2. Economics
3. the following information has been gathered on the costs and...

# Question: the following information has been gathered on the costs and...

###### Question details

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 2% 5% Life expectancy for survivors 30 years 20 years Initial treatment cost $20,000$10,000 Follow up costs, year 1 $5,000$1,000 Annual follow up costs, all subsequent years $1,000$500

a. What is the total cost for the survivors receiving treatment A? $54,000 For decedents (assuming sudden death)?$20,000

b. What is the total cost for survivors receiving treatment B? $25,500 For decedents?$10,000

c. What is the expected cost for those patients receiving treatment A? $52,540 d. What is the expected cost for those patients receiving treatment B?$23.995

e. Calculate the incremental cost and incremental benefit of the treatment alternatives.

f. C = E =

g. What is the ICER?

ICER = C/E =