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1 On the R-S graph, where is the location of the pooling equilibrium for both th

ID: 3289577 • Letter: 1

Question

1 On the R-S graph, where is the location of the pooling equilibrium for both the frail and robust individuals (in a heterogenous setting)?

2 For year 1 after the surgery, the patient's life expectancy factor (F) = 0.3. His quality factor (q) = 0.2, and the discount rate is 4%. What is QALY for year 1 for this patient (rounded-off)?

3 In addition to the info in the previous question now assume there are 1,000 employees working in the factory. how much is the value of one statistical life?

4 Mr. S.D. Nahllams owns the electronic assembly factory where the exhaust isolating the chemical fumes has developed a small leak. The odds of dying from this leak is 1 in 100. Instead of repairing the leak which would cost $12 millon, Mr. Nahllams decide to give this to his factory employees which they gladly welcomed. Given all these information, how much is Mr. Nahllams valuing one statistical life of a factory worker?

5

For questions 15 - 18

15. Given the following table, are there OBVIOUSLY dominated treatments? If yes which one (ones) is (are) it (they)?

16. Which of the following is correct?

C dominates B

Using ICER computation, starting with treatment Z, where should the next treatment be?

none of the abvoe

Is there a marginally dominated treatment? Which one

Treatment Cost life expectancy after Treatment Z $15,000 35 B $18,000 36 A $16,500 38 C $19,000 39 D $17,000 42

Explanation / Answer

Dear Student, please post one question at a time. Thanks.

Solution of 1:

The pooling equilibrium for both the frail and robust individual is at full and unfair insurance point, where there no one is earning profit.