Question

QUESTION 6. 12 marks (a) Use the information in the following three tables to assign costs, probabilities, and QALYs to the branches of the decision tree shown below. Calculate the expected cost and expected QALY for Drug A, Drug B, and usual care. You do not have to reproduce the decision tree in your answer, but you do need to show the equations used to come up with your answers (see slide 55 in lectures 15 and 16 for examples of these equations). [12] Drug A $1,000 $400 $600 $1,400 N/A Drug B $800 $400 N/A $1,400 N/A Usual Care $500 $400 N/A $1,400 $2,000 I Costs Initial Cost Cure Additional Dose → Cure Surgery → Cure Death Probabilities Cure Additional Dose → Cure Surgery → Cure Death QALYs Cure Additional Dose → Cure Surgery → Cure Death Drug A 0.70 0.10 0.20 Drug B 0.60 N/A 0.40 N/A Usual Care 0.50 N/A 0.45 0.05 N/A QALY 10

Answer 1

Expected cost= Initialcost+cost*probabbility expected cost of Drug A= $520 Expected cost of Drug B= $1840 . Expected cost of usual care= $1430.

SOLUTION Date Expecbed cost Bor Drug A Expected cost = ost Doug A probability for cure = $4oox o. To = 280 Additional dose > Cure = 6oox o.10=60 Susgesy -> cure = toox0.203280 Dobal expected cost = { 280+ $ Go + $ 280= $ 520 + $ Cloon Drug B Dnitial cost Cure = $800xo.co=480 Additional dose > cure = $40oxo=0 susgesy - cure = $14ooxo.to= 560 Total cost = 48otot 560 = loto Initial cost = 9800 i Pobal expected cosity = $ 1040 +800 = 184+of USUAL CARE Bos Cuser & tox0.50 = Quo/ susgesy > Cure = $14ooxo.45 = 6304 Death = $1004 initial cost = $500 po tal ex pecbed cost 200 +63 0+100+500 $ 4430 QALY Quality Allested life yeas expected QALY for Drug A - probabilities & QALY's = 0. FoxLot Olox8+0. 20x6 = 9 yeas Dusun B = 0.60X1Oto.LtOx6 = 8.4 yeas Bor scral Case = 0.5ox lot 0.45X 6+0.05% = F. Eyeas Teacher's Signature