Question

Given:

Treatment E: Cost = $5,000, benefit = survival rate of 60%

Treatment F: Cost = $7,000, benefit = survival rate of 50%

Treatment G: Cost = $4,000, benefit = survival rate of 40%

Treatment H: Cost =$5,000, benefit = survival rate of 30%

Treatment K: Cost =$3,000, benefit = survival rate of 55%

Treatment J: Cost = $6,000, benefit = survival rate of 68%

1. Treatment E obviously dominates _________________

Treatment H only

Treatments H and G only

Treatments H and F only

all the other treatments

none of the treatments

2.

Treatment H obviously dominates_______

Treatments K, E, and J

Treatment K and H

Treatment G

all the other treatments

none of the treatments

Answer 1

Answer:

given details of 6 treatments:

1. Treatment E obviously dominates _________________

Since the cost is less and benefit is more for E, it dominates Treatments H and F only

option (c) :Treatments H and F only

i.e The cost of pursuing treatment E is lesser than the cost of pursuing treatment H and F while the benefits from E is higher than that of H and F.It is therefore certain than E dominates H and F.

2. Treatment H obviously dominates_______

Since the cost is not less and benefit is not more for H , when compared to other treatments it does not dominate any treatments.

option (e) :none of the treatments