Calculate the weighted-average h factors

Assignment Help Public Economics
Reference no: EM13891292

Problem 1. Calculating QALYs

In a given population, the probabilities of dying in successive 10-year intervals, in percent, are [6, 4, 4, 4, 4, 8, 15, 20, 40, 100]. Assume that total deaths in each interval occur evenly throughout the interval.

i) Find the proportion of individuals in this population who survive to the end of each 10-year interval. Also find the approximate life expectancies in this population at birth, and at age 60.

Now suppose that there are two diseases that may affect the quality of life of individuals in this population. On their sixtieth birthday, surviving individuals (that is, those surviving to the end of interval 6) face a 10% risk of getting disease A, from which they will never recover, and which reduces the quality of their remaining life by 40% (but does not change their risk of dying). On their seventieth birthday, survivors who don't already suffer from A also face a 10 % risk of getting it, with the same consequences. Moreover, there is another disease, B, which, at any given time, afflicts 25% of all those in their 70s, 80s, and 90s, and which reduces the sufferer's quality of life by 30% but does not change their risk of dying.

ii) Calculate the fractions of this population who will suffer from disease A in the last four age intervals. Assuming that a person can have both A and B, and that the probabilities of the two kinds of illness are independent, also calculate what proportions in these age brackets will have both A and B

The h factors in the formula for the quality-adjusted life expectancy (see the powerpoint slides) in the last four age intervals in this population will be the weighted average of the h factors for four population sub-groups: Those who are well; those who suffer from disease A only; those who suffer from disease B only, and those who suffer from both A and B. From the information above, the h factors for the first three groups are 1, 0.6 and 0.7 respectively. For the last one, assume that the h factor is 0.6*0.7=0.42.

iii) From this information and your answer in ii), calculate the weighted-average h factors in this population, and the quality-adjusted life expectancy for the population as a whole

[Hint: In part ii) you have calculated the fractions with disease A in these age brackets, and you know that 20% of those in the last three age brackets have B. You have also calculated what fractions in the last three age brackets have both A and B. The fractions who have either "A only" or "B only" are calculated by subtracting "both A and B" from the total fractions with A and B. The fraction who are well is the residual.]


iv) Without actually doing the calculations, explain how each of the following measures would influence this population's quality-adjusted life expectancy. Discuss what information, in addition to that provided below, you would need in order to decide which of these measures would be worthwhile.

reducing the death rates for those in their 30s and 40s from 4 to 3%;
reducing the death rates for those in their 80s from 40 to 30%
reducing the risk of getting A from 10 to 5%, on peoples' 60th and 70th birthdays
a new drug that reduces the loss of life quality of those with disease B from 30% to 15%

Now consider 1000 people who have been diagnosed with a serious disease C. With current treatment methods, which cost $ 20,000 per patient, patients survive an average of 3 years, with a life quality that is only half that of a person in normal health. A new treatment method has been invented, which costs $70,000 per patient. It has a success rate of 60% (in unsuccessful cases, the patient dies). Among the survivors, 30% die within 5 years; half of those alive after 5 years die within the next five years; all those alive after 10 years die within the next 5 years. The life quality of survivors when the new treatment method is used is 70% of that of a person in normal health

v) Provide an estimate of the cost per additional QALY when the new treatment method is used, rather than the current one. In your calculations, again assume that total deaths during each five-year interval are evenly spread over the 5 years.

Verified Expert

Reference no: EM13891292

Questions Cloud

Reporting tools/solutions available in the marketplace : What are other reporting tools/solutions available in the marketplace?When should you use grouping and subreports?
Define term - stereotyping prejudice and discrimination : Stereotyping, Prejudice, and Discrimination. The terms stereotyping, prejudice, and discrimination are often used interchangeably, yet they have different definitions
What are the managerial implications of a correlation : What are the managerial implications of a correlation between these variables??
Ethical principles of psychologists and code of conduct : Briefly discuss the ethical issues that apply, referencing either (or both) the Behavior Analyst Certification Board Guidelines for Responsible Conduct and/or the APA's Ethical Principles of Psychologists and Code of Conduct.
Calculate the weighted-average h factors : Calculate the fractions of this population who will suffer from disease A in the last four age intervals and discuss what information, in addition to that provided below, you would need in order to decide which of these measures would be worthwhile.
Which option should the firm pursue : Suppose you are a firm facing a market which has changed in its composition since the last time you set prices. There are two market segments: X and Y, with reservations prices $20 and $10, respectively, for a unit of your product. The purchase frequ..
Importance of competent communication : Please choose a venue in the hospitality industry that is of most interest, covering the below topics.
Mcdonald''s inclusion & diversity programs : McDonald's Inclusion & Diversity Programs 1. Reading the case, as well as, going to McDonald's website, in what ways has McD's taken a proactive approach toward supporting and valuing diversity?
Compare use of self-report with use of direct observation : Compare and contrast the use of self-report with the use of direct observation as they relate to obtaining data. Discuss an example from your personal or professional life where you needed to collect data.

Reviews

Write a Review

Public Economics Questions & Answers

  Write a 2- to 3-page paper that addresses the followingwhat

write a 2- to 3-page paper that addresses the followingwhat is the value of understanding the discipline of health

  Health care coverage for americans

What role, if any, should the U.S. Government play in health care coverage for Americans? Should the government's role in terms of health insurance be different for those with jobs and for those without jobs?

  Questions 1 nbspa tax on earningsthis problem focuses on

questions 1 nbspa tax on earningsthis problem focuses on the labor supply ecrarrects of taxes. assume there is a worker

  Understand different theories of social welfare we suppose

understand different theories of social welfare. we suppose that each individuals well-beingwelfare from any

  Is current health care system an example of market failure

Identify concerns about cost, quality, and access to the current U.S. health care system and Answer the question: Is the current health care system an example of market failure that requires government intervention?

  Discuss how person is involved or influences e-commerce

Discuss how person is involved or influences e-commerce via reviews, product advertisements, giveaways or other means. How does this person garner trust or goodwill with followers?

  Evaluate the impact of exchange rate

Evaluate the impact of exchange rate adjustments and their effects on the balance of payments. Select a current exchange rate practice and explain the economic factors that influence that practice.

  Explain how economics is used as a social science

The news headlines during late 2012 and early 2013 were predominantly encompassed by the numerous deliberations between the President of the United States of America and the United States Congress regarding how to deal with the economic situations..

  Create an ice scatterplot

Create an ICE scatterplot and explain your scatterplot.Which quadrant do most of your iterations fall into?What does this mean?

  This case study shows how the absence of serious bafflers

this case study shows how the absence of serious bafflers to entry is likely -to -influence the price of flat-top tv

  Relationship of health and utility

What are two major efficiencies arising out of providing health insurance through employer related work groups - What is the difference between a HMO (health maintenance organization) and a fee for service insurance plan?

  Draw income-household time constraint for coming year

A worker receives an offer from all three companies; on the same graph, draw the income-household time ("budget") constraint for the coming year under both offers.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd