Consider the following set of treatments. Treatment Total Cost QALY Do Nothing 0 0 Physical Therapy $300 0.5 Surgery $700 1 Acupuncture $900 0.6 Chemotherapy $1800 1.9

a) Indicate any treatment that is not dominated by another treatment (mark all correct answers).

b) Continue to consider the treatment options given above. What is the Incremental Cost Effectiveness Ratio (ICER) between Chemotherapy and Surgery?

c) Continue with the prior question. For this part, assume that the individual values each QALY at $900. What treatment would the individual choose? (Mark your answer below).

To best answer this question, you might find it helpful to draw the CEF (cost effectiveness frontier). Plot all treatments with cost on the horizontal axis and QALY on the vertical axis. Next, draw several indifference curves that reflect this individual's valuation.