Podcast
Questions and Answers
What is the primary purpose of decision modelling in economic evaluation?
What is the primary purpose of decision modelling in economic evaluation?
- To allow for the variability and uncertainty associated with decisions (correct)
- To assess the clinical effectiveness of treatments
- To predict patient satisfaction levels
- To calculate the financial budget of an organization
How is the likelihood of each consequence expressed in a decision analytic model?
How is the likelihood of each consequence expressed in a decision analytic model?
- As percentages of occurrence
- As cost-benefit ratios
- Through qualitative descriptions
- In terms of probabilities (correct)
What does the expected cost for a given option represent?
What does the expected cost for a given option represent?
- The sum of the outcomes for each consequence
- The lowest possible cost of all consequences
- The weighted sum of the costs of each consequence by the probability of that consequence (correct)
- The average cost per patient
Which of the following best represents variability in decision modelling?
Which of the following best represents variability in decision modelling?
In decision analytic models, how is the uncertainty of a parameter best addressed?
In decision analytic models, how is the uncertainty of a parameter best addressed?
What type of events might be modeled as dichotomous in decision analysis?
What type of events might be modeled as dichotomous in decision analysis?
In the context of economic evaluation, what does the 'decision' typically relate to?
In the context of economic evaluation, what does the 'decision' typically relate to?
What does the estimation of parameters in decision models require?
What does the estimation of parameters in decision models require?
Study Notes
Decision Modelling
- Decision modelling is a systematic approach to decision making under uncertainty, used in economic evaluation to evaluate alternative options.
Decision Analytic Model
- A decision analytic model uses mathematical relationships to define a series of possible consequences that would flow from a set of alternative options being evaluated.
- Each consequence has a cost and an outcome, and the likelihood of each consequence is expressed in terms of probabilities.
- The model calculates the expected cost and expected outcome of each option under evaluation.
Expected Cost and Outcome
- The expected cost (outcome) is the sum of the costs (outcomes) of each consequence weighted by the probability of that consequence.
Variability and Uncertainty
- A key purpose of decision modelling is to allow for the variability and uncertainty associated with all decisions.
- The model reflects the fact that the consequences of options are variable, and that there is uncertainty in estimating parameters.
Structuring the Model
- The model is structured to reflect the variability and uncertainty of consequences, using probability parameters to express the likelihood of outcomes.
- Sensitivity analysis is used to account for the uncertainty in estimating these parameters.
Applications of Decision Modelling
- Decision modelling is used to inform resource allocation decisions in healthcare, such as:
- Should a collectively-funded health system fund a new drug for Alzheimer's disease?
- What is the most cost-effective diagnostic strategy for suspected urinary tract infection in children?
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Description
Learn about decision modelling, a systematic approach to decision making under uncertainty, and its application in economic evaluation. Understand how decision analytic models use mathematical relationships to define consequences and outcomes.
