Question

Thoroughly answer the following questions:

1. What is the importance of generalizability in cost effectiveness analysis?
2. Why are adjustments needed in determining risks and rates?
3. What is the difference between prevalence and incidence? Provide an example of each. Do not provide the definitions, explain in your own words.
4. Discuss the difference between risks and rates (in your own words) and when each should by used.
5. What is the difference between cumulative incidence and incidence rate and when should each be used? Be sure to explain in your own words.

Answer 1

1) When the cost-effectiveness analysis basis is on one or more randomized results, it would only be as effective as the data in the trial. In case the trial is biased in certain way or not generalizable adequately, the cost-effectiveness analysis will be facing the same limitations. When the cost-effectiveness analysis basis is on a simulation model instead of the trial, it will only be as beneficial as the input values. It is necessary to keep an adequate control group for making the comparison. In case an inappropriate control group is selected, the resultant comparison would not result to effective resource utilization

As per policy we have to answer first question