5. Intervention A has costs=100 and benefits = 10. Intervention B has costs = 50 and benefits=5. The incremental cost effectiveness ratio is equal to

A. 20 B. 15 C. 5 D. 10

6. The purpose of a sensitivity analysis performed on a cost effectiveness analysis is

A. to determine the appropriate perspective of the study

B. to gauge the reliability of the study

C. to correct for inflation

D. to correct for time preference

7. If a treatment is not efficacious then:

A. it may still be cost effective

B. there is no point in performing a cost effectiveness analysis of it

C. it is never dominated by other treatments

D. none of the above

8. What are the conditions for a treatment to be strongly dominated?

A. It has lower costs and higher benefits than any other treatment

B. It has higher costs and lower effectiveness than another treatment under consideration

C. It costs more than $50,000 per life year gained

D. none of the above

9. If benefits in yr 1= 10 and in yr 2 = 20 and the discount rate is 5%, then

A. The net present value of benefits is 10/1.05 + 20/1.05

B. the net present value of benefits is 10 + 20/1.05

C. the net present value of benefits is 10 + 20

D. none of the above

10. If treatment A costs $40,000 per life year gained and treatment B costs $125,000 per life year gained, a decisionmaker would probably

A. choose both A and B

B. choose neither A nor B

C. choose A but not B

D. choose B but not A