1.The cost-effectiveness of influenza vaccination is well established for persons aged 65 years and older. A study in the October 4 2000 issue of theJournal of the American Medical Association (JAMA)considered cost-effectiveness and cost-benefit for healthy adults less than 65 years old. A randomized experiment was run. The treatment group received an influenza vaccination, while the control group received a placebo. Any favorable benefits of influenza vaccination last only for one flu season (a year).

Consider the costs and benefits of influenza vaccination for 1,500 adults when per person

- The cost of vaccination (including lost work time) is $30. - The cost of influenza illness (including lost work time) is $250. - Influenza vaccination reduces the probability of getting influenza from 0.25 to 0.15.

a) Perform a cost-benefit analysis of influenza vaccination? Does the cost-benefit analysis favor vaccination?