Question

Suppose two drugs are routinely used for the treatment of thyroid dysfunction. Drug X is known to cure the disorder 75% of the time and costs $88. Drug Y is known to cure the disorder 60% of the time and costs $75. The two drugs work independent of each other. The two treatment plans are as follows:

Plan A: Treatment with Drug X—if not effective, treatment with Drug Y
Plan B: Treatment with Drug Y—if not effective, treatment with Drug X

Answer 1

From the perspective of an insurance company paying for the treatment, which is the best decision?

a) Based on the overall probability of a cure, plan A should be selected over plan B.
b) Based on the overall probability of a cure, plan B should be selected over plan A.
c) Based on the overall cost of treatment, plan A should be selected over plan B.
d) Based on the overall cost of treatment, plan B should be selected over plan A.

Answer 2

i think its either c or d

Answer 3

so which on is it?

Answer 4

one*

Answer 5

@mathmale

Answer 6

i never asked

Answer 7

I don't know the answer to this, maybe someone else can help