Cost-Effectiveness Analysis and Decision Making
2 by 2 Contingency Table
A table used to analyze the relationship between two categorical variables
Discounting
A technique used to adjust future costs and outcomes to their present value
Dominated Alternatives
Alternative options that are inferior to other options in terms of both cost and effect
Sensitivity Analysis
An analysis that examines the impact of varying assumptions or inputs on the results of a study
One-way Sensitivity Analysis
An analysis that varies one input at a time while keeping other inputs constant
Two-way Sensitivity Analysis
An analysis that varies two inputs simultaneously to examine their combined impact on the results
Balanced Decision Tree
A decision tree that has an equal number of branches following each chance node
Decision Tree
A graphical representation of a decision-making process that considers different possible outcomes and their probabilities
Survival Curve
A graphical representation of the probability of surviving for a certain length of time
Bay's Theorem
A mathematical formula that calculates the probability of an event based on prior knowledge and new evidence
Utility
A measure of the quality of life or satisfaction derived from a particular health state
Standard Gamble
A method to estimate utility by asking individuals to make choices between different health states
Visual Analog Scale
A method to estimate utility by asking individuals to rate their health state on a scale
Time Tradeoff
A method to estimate utility by asking individuals to trade off time in a particular health state
Comparator
A reference case or alternative therapy used for comparison in health economics studies
Discrete Event Simulation
A simulation technique that models the operation of a system as a sequence of events
Monte Carlo Method
A simulation technique that uses random sampling to model uncertainty in a system
Markov Process
A stochastic model that represents a system with a finite number of states and probabilistic transitions between states
ICER
Incremental Cost-Effectiveness Ratio, a measure of the additional cost required to achieve an additional unit of effect
QALYs
Quality Adjusted Life Years, a measure of the quantity and quality of life lived
ROC Curve
Receiver Operating Characteristic Curve, a graphical plot that illustrates the performance of a binary classifier
Sensitivity
The ability of a test to correctly identify individuals with a particular condition
Specificity
The ability of a test to correctly identify individuals without a particular condition
Cost
The amount of money required to produce or obtain something
Probability
The likelihood of an event occurring
Negative Predictive Value
The probability that a negative test result indicates the absence of a particular condition
Positive Predictive Value
The probability that a positive test result indicates the presence of a particular condition
Prevalence
The proportion of a population that has a particular condition or characteristic prev = (TP + FN) / Total (a marginal probability)
Effect
The result or consequence of an action or event