# Who can do Decision Analysis

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Essentials of Applied Quantitative Methods for Health Services Managers

Chapter 10 Homework

10-2: In the clinic renovation example on pages 201-205, what if management thinks that the likelihood of current demand remaining is 30%, the likelihood of a moderate increase is 25%, and the likelihood of a large increase is 45%? What should they do, according to the expected total payoff? (20 points)

10-3: In the clinic renovation example, what if management thinks that the likelihood of a moderate increase is twice as likely as either current demand remaining or high demand occurring? What should they do? (10 points)

Chapter 11 Homework

Use the following worksheet Table 11-1 to answer the subsequent questions:

11-1: How much did it cost, per person screened, for the initial cholesterol testing? Remember that each provider on site incurs costs to travel form the health department to the site and back. (5 points)

11-2: How much did it cost per person who participated in the special intervention as well as the initial screening? (5 points)

11-3: What is the cost per percent reduction in cholesterol for the initial screening only and for the initial plus special group? (5 points)

11-4: What is the marginal cost per percent additional reduction in cholesterol attributable to the special intervention? (5 points)

11-5: How does this compare with the lifetime coronary heart disease cost savings from reducing serum cholesterol? (5 points)

Chapter 11 Extra Credit (6 points):

1. Identify possible bases to use for expressing the following resources not expressed per unit of service:

a. Administrative and supply costs

b. Equipment

c. New space

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