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CHAPTER 17 A public health department is considering five alternative programs t

ID: 2572271 • Letter: C

Question

CHAPTER 17 A public health department is considering five alternative programs to e to have their preschool children vaccinated against a communica ncourage parents ble disease. The following table shows the cost and number of vaccinations predicted for each program. Program Cost (S) 20,000 44,000 72,000 112,000 150,000 Number of Vaccinations 2,000 4,000 6,000 8,000 10,000 Ignoring issues of scale, which program is most cost-effective? Assuming that the public health department wishes to vaccinate at least 5,000 children, which program is most cost-effective? a. b.

Explanation / Answer

a)

Program

Cost

Number of Vaccinations

Cost per vaccinations

A

20000

2000

20000/2000 = 10

B

44000

4000

44000/4000 = 11

C

72000

6000

72000/6000 = 12

D

112000

8000

112000/8000 = 14

E

150000

10000

150000/10000 = 15

Program A is the most cost effective as Cost per vaccinations is lower in Program A in comparison to other program.

b)

Program C is the most cost effective to vaccinate at least 5000 children.

Program

Cost

Number of Vaccinations

Cost per vaccinations

A

20000

2000

20000/2000 = 10

B

44000

4000

44000/4000 = 11

C

72000

6000

72000/6000 = 12

D

112000

8000

112000/8000 = 14

E

150000

10000

150000/10000 = 15