solution

There are three 3-month-long options to treat studentitis, a depression-like condition in which a student thinks he or she will be in college forever with no option for parole. Results (effectiveness) cannot be determined until students have been exposed to the treatments for a period of 3 months. Option I is the standard option, which consists of group counseling. Option II consists of a new studentitis medication that has no side effects. Option III consists of a combination of the new medication and group counseling.

The costs of the standard option, Option I (counseling), are $100 per month. This treatment alone is measured to be effective in 40% of the cases.

The costs of Option II (medication) are $50 per month for the medication. This treatment alone is measured to be effective in 60% of the cases.

The costs of Option III (counseling and medication) are the combined costs of Options I and II. The effectiveness of this combination treatment is measured to be 90%. Each option includes 3 months of therapy for these 3 months:

1. Calculate a CER for:

a. Option I

b. Option II

c. Option III

2. Calculate an ICER comparing Option I (the standard) with Option II.

3. Calculate an ICER comparing Option I (the standard) with Option III.

Please don’t respond with this answer again its incorrect.

1.Question Answer:

Cost Effectiveness Ratio for option 1 cannot be calculated standalone. A ration exists only for options greater than one.

2. Question Answer:

The Incremental Cost Effectiveness Ratio for Option 1 with option 2:

(Cost with Option 1- Cost with Option 2)/(Effectiveness with Option 1- Effectiveness with Option 2)

(300-150)/*(40-60) = -150/20 = -7.5

Hence it comes to be negative thus option 2 is more Effective