# ANSWER KEY TO EXERCISES

## CHAPTER 1

1. The total cost of Staphbegone is \$12,000 + \$1,000/day × 5 days = \$17,000. The total cost of Staphbeilln is \$4,000 + \$1,000/day × 10 days = \$14,000. The incremental cost of Staphbegone is therefore \$17,000 − \$14,000 = \$3,000.
2. The incremental cost is \$17,000 − \$14,000 = \$3,000, and the incremental effectiveness is 35 QALYs − 34.5 QALYs = 0.5 QALYs. Therefore, the incremental cost-effectiveness is \$3,000/0.5 QALYs = \$6,000 per QALY gained.
3. 1,000/375/QALY gained = 2.67 QALYs gained.
4. The mosquito net strategy will purchase \$1,000/\$846/QALY = 1.18 QALYs. The measles strategy will purchase \$1,000/\$375/QALY = \$2.67 QALYs. The number of QALYs forgone is equal to 2.67 QALYs − 1.18 QALYs = 1.48 QALYs relative ...

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