The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this problem, costs and consequences are not discounted. Treatment A Treatment B Mortality rate Life expectancy for survivors Initial treatment cost 2% 5% 20 years $10,000 $5,000 Annual follow up costs, all $1,000 10 years $3,000 $1.000 Follow up costs, year 1 $500 subsequent years a. What is the total cost for the survivors receiving treatment A?

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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The following information has been gathered on the costs and effectiveness of
the two treatments, A and B. In this problem, costs and consequences are not
discounted.
Treatment A
Treatment B
Mortality rate
Life expectancy for survivors
Initial treatment cost
2%
5%
20 years
$10,000
$5,000
Annual follow up costs, all $1,000
10 years
$3,000
$1.000
Follow up costs, year 1
$500
subsequent years
a. What is the total cost for the survivors receiving treatment A?
Transcribed Image Text:The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this problem, costs and consequences are not discounted. Treatment A Treatment B Mortality rate Life expectancy for survivors Initial treatment cost 2% 5% 20 years $10,000 $5,000 Annual follow up costs, all $1,000 10 years $3,000 $1.000 Follow up costs, year 1 $500 subsequent years a. What is the total cost for the survivors receiving treatment A?
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