EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN: 9781337668279
Author: Henderson
Publisher: YUZU
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Question
Chapter 4, Problem 9QAP
(a)
To determine
The cost benefit table of alternative clinical programs and select the best alternative in terms of the incremental cost effectiveness ratio and the number of lives saved.
(b)
To determine
The means by which, the cost effectiveness ratio is different from the incremental cost effectiveness ratio.
(c)
To determine
The preferred option of an economist among cost effectiveness analysis and incremental cost effectiveness ratio.
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subject to X1
X2
Maximize dollars of interest earned = 0.07X1+0.11X2+0.19X3+0.15X4
≤ 1,000,000
<2,500,000
X3
≤ 1,500,000
X4
≤ 1,800,000
X3 +
XA
≥
0.55 (X1+X2+X3+X4)
X1
≥
0.15 (X1+X2+X3+X4)
X1
+ X2 X3 +
XA
<
5,000,000
X1, X2, X3, X4 ≥
0
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Chapter 4 Solutions
EBK HEALTH ECONOMICS AND POLICY
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