GIVEN TREATMENT CHOICES
Treatment cost Life expectancy
Treatment A $3,000 10 years
Treatment Z $5,000 13 years
Treatment B $7,000 17 years
Treatment Y $9,000 19 years
Treatment C $11,000 27 years
Treatment X $13,000 23 years
Treatment D $15,000 31 years
Treatment W $17,000 29 years
No treatment $0 2 years
1. Identify obviously dominated treatments, if any. Identify each dominated treatments and the corresponding dominating treatments that dominate it.
2. Eliminate these obviously dominated treatments from the table for further analysis
3. Solve for the ACER for the remaining treatments
4. Solve for the ICERs
A. If we start from treatment A
B. If we start from treatment Z
C. If we start from treatment B
D. If we start from treatment Y
5. Are there marginally dominated treatments? Identify