The NIH receives many grant applications from scientists studying a wide array of diseases. Consider the grant decision presented in Problem 15(a), which led to funding approval for research into a rare disease. Suppose the situation changes and the grant application in that case is now no longer being considered in isolation. Instead, it is one of 30 applications, only 10 of which can be approved based on the current NIH budget.

As the scientist reviewing these applications, how would these new details impact your decision? What are the key considerations that will affect your decision to fund the project?

Problem 15(a)

Conduct a formal cost-benefit analysis for this project, weighing the costs of funding the proposal and the benefits of a possible cure for the disease. Use the figure of $9.6 million for the value of a life. Do the costs outweigh the benefits? Do you recommend funding the grant?