Please provide work.

A research team at the University of Michigan has developed a controversial new intervention for elderly people with elevated risk for heart disease. This intervention involves an intensive exercise program, and appears to have large benets as well as large risks. The main benet is that the program lowers heart disease risk. In fact, it lowers heart disease risk so much that those who make it through the regimen, which lasts one year, have an increased life expectancy by 5 years: their life expectancy, starting after the end of the one-year mgimen, is 9 years, as compared to only 4 years (starting after one year has elapsed) if they hadn't done the regimen. Each person has a 20% risk, however, of having a fatal heart attack at the very beginning of the exercise regimen (for simplicity, assume that this would happen on the very rst day of the mgimen). This is especially concerning because we project that without the intervention nobody would die (from any cause) during that first year. a) Calculate the average health effect of the intervention in life-years per person. [3pt] b) Suppose the direct costs of the intervention are $5000 per participant (for simplicity, assume that this cost applies even to people who die from the heart attack at the beginning of the regimen). On the other hand, the intervention decreases future medical costs by $2000 per initial participant. (Note: for the purpose of this problem and the other problems in this problem set, do not worry about applying a discount rate to rture costs or benets). Calculate the cost-e'ectiveness ratio of the intervention. [Spt] c) Recalculate the costeffectiveness ratio under the following new assumption: among the 20% of intervention participants who suffer a heart attack on the rst day of the intervention, half of them die right away and half of them live for one year. [Spt] d) If your analysis accounted for health utility, by calculating QALYs, would that most likely lead to a higher or lower costeffectiveness ratio as compared to when you ignore health utility (and just focus on life-years)? [2pt]