The expected cost of Betazine therapy is $544. It is effective 57 percent of the time, with
Question:
The expected cost of Betazine therapy is $544. It is effective 57 percent of the time, with a 6 percent chance of an adverse drug reaction. The following table shows data for Alphazine, a new treatment. Estimate the rate of adverse drug reaction and the expected cost of treatment. Use Excel to construct a decision tree for this problem. Should you choose Alphazine or Betazine.
Probability Cost
Effective=63% Adverse drug reaction 5% $700
No adverse Drug reaction 95% $500
Ineffective=37% adverse drug reaction 5% $800
No adverse drug reaction 95% $600