# Suppose Sam has the opportunity for a treatment that will extend his life by one year with a probability of 0.57 by two years with a probability of 0.37, and three years with a probability of 0.11. Sam will die with certainty after three years. QALY weight q1 is 0.9 in year 1, q2 is 0.6 in year 2, and q3 is 0.2 in year 3. The discount rate is 6% per year. The total number of discounted QALYs from this treatment is:

Suppose Sam has the opportunity for a treatment that will extend his life by one year with a probability of 0.57 by two years with a probability of 0.37, and three years with a probability of 0.11. Sam will die with certainty after three years. QALY weight q1 is 0.9 in year 1, q2 is 0.6 in year 2, and q3 is 0.2 in year 3. The discount rate is 6% per year. The total number of discounted QALYs from this treatment is:

Solution : = 0.57 * 0.9 * 1 / (1.06)1 +  0.37 * 0.6 * 1 / (1.06)2 +  0.11 * 0.2 * 1 / (1.06)3

= 0.513 / 1.06 + 0.222 / 1.1236 + 0.022 / 1.191016

= 0.48396 + 0.19758 + 0.018472

= 0.7 (approx)

Conclusion:- Total number of discounted QALYs from the treatment = 0.7 (approx).

Asked on February 15, 2018 in