1.

In a randomized trial of 25,000 participants with a rare medical condition, a new drug was predicted to reduce the risk of death by 0.3 percent (i.e. 0.003).Each individual in this group would be expected to live, on average, another 45 years in the absence of the condition.

Given this information, how many life-years are predicted to be saved if each of the 25,000 participants receives the treatment?

• A. 6,165
• B. 3,375
• C. 75
• D. 5,490

2.

In reference to the previous question:The cost of treatment with this new drug, per person, is $5,000, and there is currently no alternative treatment (so the alternative cost is $0).

Suppose the actual number of life years saved in the randomized trial turned out to be 5,220.

Given this result, what is the incremental cost effectiveness ratio (ICER) for this new drug (NOTE:Round your answer to the nearest whole number, without dollar sign or commas)?

3.

An individual is willing to pay $600 for a treatment that reduces the individual's probability of death by 0.05 percent (i.e. 0.0005).What is the implied (self-assessed) value of the individual's life?

Group of answer choices

A. $1,200,000

B. $2,400,000

C. $12,000.

D. $3,000,000