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