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ANSWER IN QALYS. DISCOUNT ALL THREE YEARS. ROUND TO TWO DECIMAL PLACES. 1. Suppose Sam has...

ANSWER IN QALYS. DISCOUNT ALL THREE YEARS. ROUND TO TWO DECIMAL PLACES.

1. Suppose Sam has the opportunity for a treatment that will extend his life by one year with a probability of 0.78 by two years with a probability of 0.50, and three years with a probability of 0.18. Sam will die with certainty after three years. QALY weight q1 is 0.9 in year 1, q2 is 0.6 in year 2, and q3 is 0.2 in year 3. The discount rate is 5% per year. The total number of discounted QALYs from this treatment is:

2. Suppose Cathy has the opportunity for a treatment that will extend her life by one year with a probability of 0.69 by two years with a probability of 0.54, and three years with a probability of 0.30. Cathy will die with certainty after three years. QALY weight q1 is 0.8 in year 1, q2 is 0.7 in year 2, and q3 is 0.5 in year 3. The discount rate is 9% per year. The total number of discounted QALYs from this treatment is:

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Solution- Discount QLAYS= Probability X weight x Discount factor Year / Probability / weight | PVFO St. | Discount factor 1 0

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