Let us assume that the incidence of a disease is two individuals per year. The direct costs perperson per year, including the cost of the patient's time, are 5,000 m.u. annual morbiditycosts are 4,000 m.u, and annual costs due to productivity losses are 10,000 m.u. All theprevious monetary values refer to year 1.The life expectancy of a person who has contracted the illness is 4 years. Therefore, a personwho contracts the illness at the beginning of this year (year 1) will survive until the end of year4 and will die at the beginning of year 5. On the other hand, every year 8 individuals will havethis iness and the annual mortality will be of 2 individuals (who caught the disease 4 yearsagol. Premature death due to the liness represents a loss of 5 life years per individual. Thediscount rate is 4%Estimate total direct costs in year 1 using the prevalence approach.Select oneOa Total direct costs using the prevalence approach cannot be estimated with theInformation provided in this question.Db 40,000 m.uOc 10,000 m.u.Od 20,000 ma

The prevalence approach is a method for calculating the economic effect of an illness by accounting…

Answered: Estimate total direct costs in year 1…

Business

Economics

Estimate total direct costs in year 1 using the prevalence approach.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: In a cohort study, of the 100 exposed, 50 developed the disease and 50 did not. Of the non-exposed,…

A: The issue is related to epidemiology, more especially the design of observational studies and the…

Q: briefly.

A: As we know generalizability is a measure of how applicable a study's findings are to a larger set of…

Q: In general, the F-statistic, Fc, shows the significance of a population parameter significance of a…

A: Econometrics is used to explain economic phenomena using inferences from statistics, economic…

Q: Determine a general condition that makes workers want to separate themselves using education as a…

A: Given information: The wages and costs of high ability workers: wh = 20, ch = 2. The wages and…

Q: When we estimate B1 without controlling for X2, we derived in class that the B1 we are able to…

A: In regression analysis, bias refers to the systematic error or deviation between the estimated model…

Q: should

A: The firm maximizes profit where the MR=MC. The firm does not have incentive to move away from this…

Q: Age specific data on the incidence of colon cancer in male and female populations of Finland during…

A: Since you have asked multiple questions, we will solve the first three sub-parts for you. If you…

Q: Define Orders of Integration and the DF-GLS Unit Root Test?

A: Econometrics is a discipline that incorporates the statistical analysis as well as interpretations…

Q: An economic of a developing country that is expanding and becoming increasingly integrated with…

A: Gross domestic product (GDP) growth is referred to as economic growth. It is a more limited phrase…

Q: Give me accurate answer

A: To address Exercise 2.13, we need to draw an extensive game tree with perfect information,…

Q: The manager of a men’s clothing catalog measured the market’s response to a $6 decrease in the usual…

A: According to the theory of price elasticity, variations in amount demanded are correspondingly less…

Q: population need to avoid what type of bias that could occur if each individual in the source…

A: The best ways to avoid bias while sampling is by using: 1. Simple Random Sampling. 2.…

Q: Since health care expenditures in many poor African countries such as Ghana average about $12 per…

A: The allocation of resources refers to the distribution of resources, including land, labor, and…

Q: What is the overall incidence rate and the rate ratio for the following data table? D+ D- sum of…

A: Incidence rate, in epidemiology, refers to the frequency of new cases of a particular disorder or…

Q: Consider Population model Y = Bo + B1X1 + B2X2 + B3X3 + µ. Now consider the following statements a…

A: Given, The Model :Y=β0+β1X1+β2X2+β3X3+μAssumption : MLR 1-4 is satisfied

Q: The primary source of funding for the Medicare program is from premiums assessed on the elderly…

A: PLEASE FIND THE ANSWER BELOW.

Q: You may need to use the appropriate appendix table or technology to answer this question. Consider…

A: Since you have posted multiple questions, as per the guidelines we can solve only one question per…

Q: Aproblem of interest to health fficials (and others) is to etermine the effects of smoking uring…

A: (A) Most likely sign for coefficient estimate of B2 must be positive (> 0), because more income…

Q: Is it true or false that endogenous sample selection will not cause bias in the OLS estimator.

A: Endogenous sample selection occurs when the decision to participate in the sample or the decision to…

Q: utility measurement is not regarded as being as scientific as natural health unit measurements.…

A: Utility refers to the general satisfaction that an individual gains from purchasing or consuming any…

Q: Q2. There are two estimators hat (0)₁ =x+ 1 and hat(e)2 = 2x of the 2n population mean μ. Check the…

A: An estimator is said to be unbiased if the expected value of the estimator is equal to the parameter…

Q: E4 The demand function below is estimated using the data generated by a randomized controlled…

A: The data generated by randomised controlled trial is given as The table showing 95% confidence…

Q: You may need to use the appropriate appendix table or technology to answer this question. Consider…

Q: Indicate whether each statement is true or false, and justify your answer.Empirically, VSL estimates…

A: The VSL (value of statistical life) estimates vary widely by country, income, age, and gender. There…

Q: why is Md=885 instead of 440? I calculated it and 0.9-2*0.25=0.4 and 1100*0.4=440 Can you…

A: Given information: The price of a zero-bond that pays 200 euros at maturity is 160 euros today.…

Q: The null and alternate hypotheses are: H0 : μd ≤ 0 H1 : μd > 0 The following sample…

A: Ho : µd =0 H1: µd >0 ds as difference 11 9 2 12 10 2 13 14 -1…

Q: 1. If X=87, o=9, and n=69, construct a 99% confidence interval estimate of the population mean, μ.…

A: For know variance we used the normal distribution and for unknown variance we uses the t…

Q: Q.3. For the following hypothesis: H0 : µ ≤ 70 HA : µ > 70 With n = 20, = 71.2, s = 6.9, and  =…

A: Given Hypothesis: H0 : µ ≤ 70 HA : µ > 70 With n = 20, = 71.2, s = 6.9, and a = 0.1

Q: One of the primary causes of poverty in many developing nations is thought to be cattle mortality…

A: The distribution of limited resources to meet human consumers' needs can be referred to as…

Q: An estimate of a population parameter that provides an interval of values believed to contain the…

A: Confidence level: it refers to the degree of confidence or certainty in which an estimated interval…

Q: Advertising testing that studies dilation or constriction of the eye in response to stimuli is…

A: The provided question has been answered from the perspective of 'Behavioral Economics.Advertising…

Q: Consider the hypotheses below. Ho: p = 50 H: µz 50 Given that x= 55, s 8, n D20, and a =0.10, answer…

A: We have given that H0 = 50HA ≠50 x¯= 55, s = 8, n= 20 and α =0.10 We have to check which…

Q: The cost-effectiveness frontier (CEF) shows the subset of treatment strategies which are not…

A: In economics, the cost-effectiveness frontier refers to the graphical representation of cost and…

Q: Question 2 The cross elasticity of demand measures the responsiveness of the quantity demand a…

A: As a policy we are supposed to provide solution for only question at a time. Since you have asked…

Q: Suppose you just read a careful statistical study of the effect of improvedhealth of children on…

A: By external validity, we mean how well a model can predict the outcome if the model is applied to…

Q: Public health strategies aim to prevent or reduce the prevalence of type 2. Provide exmaples…

A: Effective Strategies:a) The NHS Diabetes Prevention Program: Launched in 2016, this initiative…

Q: Provide an analysis of the evidence emerging from tables 1 and 2

A: As per the graph, Table 1 shows the distribution of the number of months between UK producer price…

Q: Show that the sample variance of a random variable X is a consistent estimator of the population…

A: The objective of this question is to demonstrate that the sample variance of a random variable X is…

Q: The ACA emphasized population health for the first time in US history, since it aimed to get all…

A: Population health is the group outcomes of health outcomes of individuals, including the…

Q: Expain the Singer-Prebisch test/hypothesis.

A: The Singer-Prebisch hypothesis is one of the most important and relevant theories of the economy…

Q: Even if heteroscedaticity is suspected and detected, it is not easy to correct the problem. This…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Provide an analysis of the evidence emerging from tables 1 and 2.

A: A time interval refers to a specific period or duration between two distinct points in time. It…

Q: 59 of 90 Which one (1) of the following is a "mortgagor" with respect to insurance? The named…

A: A mortgage is a legal agreement or a financial contract between a borrower (known as the mortgagor)…

Q: Any source of difference between treatment and control groups that is correlated with the treatment…

A: The treatment group that is also known as the experimental group gets the therapy that the…

Question

Let us assume that the incidence of a disease is two individuals per year. The direct costs per
person per year, including the cost of the patient's time, are 5,000 m.u. annual morbidity
costs are 4,000 m.u, and annual costs due to productivity losses are 10,000 m.u. All the
previous monetary values refer to year 1.
The life expectancy of a person who has contracted the illness is 4 years. Therefore, a person
who contracts the illness at the beginning of this year (year 1) will survive until the end of year
4 and will die at the beginning of year 5. On the other hand, every year 8 individuals will have
this iness and the annual mortality will be of 2 individuals (who caught the disease 4 years
agol. Premature death due to the liness represents a loss of 5 life years per individual. The
discount rate is 4%
Estimate total direct costs in year 1 using the prevalence approach.
Select one
Oa Total direct costs using the prevalence approach cannot be estimated with the
Information provided in this question.
Db 40,000 m.u
Oc 10,000 m.u.
Od 20,000 ma

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define the prevalence approach

VIEW

Step 2: Compute the total direct cost for year 1

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A generalized transducing phage is used to transduce ana- b- c- d- e- recipient strain of E. coli with an a+ b+ c+d+ e+ donor. The recipient culture is plated on variousmedia with the results shown in the following table.(Note that a- indicates a requirement for A as a nutrient,and so forth.) What can you conclude about the linkageand order of the genes?
The table below shows data on a subsample of participants in the 7th examination of the Framingham Offspring Study. Characteristic n Sample Population Standard Мean Deviation Systolic Blood 10 121.2 11.1 Pressure Diastolic Blood 10 71.3 7.2 Pressure Total Serum 10 202.3 37.7 Cholesterol Weight 10 176.0 33.0 Height 10 67.175 4.205 Body Mass 10 27.26 3.10 Index Which of the following is the 95% confidence level for Systolic Blood Pressure 114.32, 128.08 120.98, 121.42 121.16, 121.24 112.16, 130.24
True or false: Discuss if False If heterosdasticity is present, then adjusted R-square is still reliable.
Please identify any evidence problems in the following generalization: Interestingly, teachers in the United States are happy with their work. Of 112 veteran teachers interviewed, 87 said they found teaching very rewarding and less stressful than when they entered the profession.
Sampling variation refers to a situation when there is uncertainty associated with a parameter estimate. researchers arrive at the precisely correct answers. different random samples lead to somewhat different estimates. there is variability across observations.
Let W be an estimator of a population characterisitc 7. If > E (W), W will under-estimate the population parameter. True O False
Three types of health sector reforms are Imposed, Big ‘R’ and Small‘R’ reforms.Carefully provide points for three (3) Health Sector Reforms (one from each type previously mentioned)that has been implemented in the Caribbean region over the last 10 years.
100kl – 5k²1² + 2k + 4l TT = dl dk and dn dn Find dk = 100 – 10kl + and dn dl = 100 – 10lk² dn dk = 1001 – 10kl² + 2 and dn dl = 100k – 10lk² + 4 dn dk = 100 – 10kl2 + 2 and dn dl = 100 – 10lk² + 4 dn
At the consulting agency, they recognize that water/wastewater customers fall under different segments. Each segment supports different characteristics that influence the services accessible to them and the price for these services. For simplification, these segments have been grouped into two categories: commercial and residential customers. Each segment has different rates. The commercial customers have a demand curve of d₁ = 3,500 - 125p₁. While residential customers have a demand curve of d2 = 8,000 - 50p2. The water/wastewater operation cost is c = $2 per unit or gallon. What is the total profit at differential pricing? $257,162 $296,537 $333,175 $344,325
The sample means, x¯ , is an example of ... Group of answer choices an interval estimate a population parameter a point estimate a population statistic
One of the pitfalls of Randomized Control Trials is that: Hard to ensure that people who are randomly assigned to treatment group are actually treated. Hard to come up with reasonable alternatives that are uniquely different from the control groups Control Group Contamination. All of the above. None of the above.
The idea that hospital competition has led to a “medical arms race” can help explain why the U.S. has more than twice the OECD average number of MRI machines per 1,000,000 population. True False