Question

0.65 59 30 Otitis media, or middle ear infection, is initially treated with an antibiotic Researchers have compared two antibiotics, A and B for their cost effectiveness. A is inexpensive, safe, and effective. Bis also safe. However, it is considerably more expensive and it is generally more effective. Use the tree diagram to the right (where the costs are estimated as the total cost of medication, office visit, ear check, and hours of lost work) to answer the following. a. Find the expected cost of using each antibiotic to treat a middle ear infection. 0.35 cm 596.15 0.80 Curv $69.15 0.20 ecur $106.00 b. To minimize the total expected cost, which antibiotic should be chosen? a. The expected cost of using antibiotic A is $

Answer 1

Answer : Pg_doro 1. Given dahar Researchers have compared two antibiokes. A and B, for their cost effectiveness. A is inexpensive, safe, and effective. Bis also sabe . Using the tree diagram to the right answer the following Amoxi Gio oh Cane + sq. 30 - - 0.25 Nocive $96.15 0.80 cure $69.15 - cefactor < 0.0 No cure $106.00 ③ we consider the expected cost for each antibionic. Amoxicillin antibiotic: El Amoxicillin ) = 0.65(99.30) +0.35 (96.15) Another antibiotic cefaclon: El celacion) = 0.80(69.15) +0.20 (106.00) - 55.32 + 2112 = 76.62. So, the expected value (Cost of Amoxicillin is 72.19 and cefaclosis 7652 6 The expected value, Amoxicillin would minimize total expected cost due to a lower expected cost.