2. (52 pts. total) The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this problem, costs and consequences are not discounted. Treatment A Treatment B Mortality rate 4% 5% Life expectancy for 25 years 10 years survivors Initial treatment cost $20,000 $5,000 Follow up costs, year 1 $4,000 $2,000 Annual follow up costs, all $800 $400 subsequent years e. (5 pts.) What is the expected benefit (years) for those patients receiving Treatment A? f. (5 pts.) Treatment B? g. (7 pts.) Draw a decision tree showing the costs and benefits of each treatment option. h. (5 pts.) What treatment should be chosen, if lowest cost per benefit is the criterion? 2. (52 pts. total) The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this problem, costs and consequences are not discounted. Treatment A Treatment B Mortality rate 4% 5% Life expectancy for 25 years 10 years survivors Initial treatment cost $20,000 $5,000 Follow up costs, year 1 $4,000 $2,000 Annual follow up costs, all $800 $400 subsequent years e. (5 pts.) What is the expected benefit (years) for those patients receiving Treatment A? f. (5 pts.) Treatment B? g. (7 pts.) Draw a decision tree showing the costs and benefits of each treatment option. h. (5 pts.) What treatment should be chosen, if lowest cost per benefit is the criterion