1. Over the last 2 years, people have been working from home. Often, individuals are not careful about their home office and can develop back pains due to improper equipment and bad posture. Consider an individual, Rob, who has developed back pains and has four options for treatment which are listed below:

Treatment Regimen	Total Costs	Paid Reduction Units (PRU)
Do Nothing	0	0 units
Invest in better equipment	50	10 units
Cortisone Injection	350	12.5 units
Five sessions with a physio to build core strength	500	25 units

a. Plot these four treatments on a cost-pain reduction axis. Construct a cost effectiveness frontier by connecting potentially cost-effective treatments. Hint: Y-axis is PRU and X-axis is Costs.

b. Calculate the Incremental Cost Effectiveness Ratio (ICER) between cortisone injections and investing in better equipment.

c. Calculate the ICER between sessions with physio and cortisone injections equipment.

d. Find the range of valuations for a pain reduction unit that Rob could have for which cortisone injections is the cost-effective treatment relative to other treatments. Using the diagram generated in (a), explain your answer.

e. Assume that the value of reducing one unit of pain for Rob is 15 dollars. Draw an indifference curve in the diagram generated in (a) and identify which treatment regimen Rob should pursue to maximise his utility.