9.48 There are a number of techniques to help people stop smoking, but their cost and effectiveness vary widely. One accepted measure of effectiveness of a program is "percentage of enrollees quitting." The table in this problem shows several techniques touted as effective stop-smoking methods, some historical data on the approximate cost of each program per person, and the percentage of people smoke-free 3 months after the program ended. The Cancer Society provides annual cost-offset funding to cancer patients so more people can afford these programs. A large clinic in St. Louis has the capacity to treat each year the number of people shown. If the clinic plans to submit a proposal to the Cancer Society to treat a specified number of people annually, estimate the amount of money the clinic should ask for in its proposal to do the following: (a) Conduct programs at the capacity level for the technique with the lowest cost-effectiveness ratio. (b) Offer programs using as many techniques as possible to treat up to 1100 people per year using the most cost-effective techniques. Cost, Technique $/Enrollee % Quitting Treatment Capacity per Year Acupuncture 700 9 250 Subliminal message 150 1 500 Aversion therapy 1700 10 200 Out-patient clinic 2500 39 400 In-patient clinic 2800 41 550 Nicotine replacement therapy (NRT) 1300 20 100

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
5th Edition
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
Section: Chapter Questions
Problem 14P
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9.48
There are a number of techniques to help people stop smoking, but their cost and effectiveness vary widely. One accepted measure
of effectiveness of a program is "percentage of enrollees quitting." The table in this problem shows several techniques touted as
effective stop-smoking methods, some historical data on the approximate cost of each program per person, and the percentage of
people smoke-free 3 months after the program ended.
The Cancer Society provides annual cost-offset funding to cancer patients so more people can afford these programs. A large clinic in
St. Louis has the capacity to treat each year the number of people shown. If the clinic plans to submit a proposal to the Cancer Society
to treat a specified number of people annually, estimate the amount of money the clinic should ask for in its proposal to do the
following:
(a) Conduct programs at the capacity level for the technique with the lowest cost-effectiveness ratio.
(b) Offer programs using as many techniques as possible to treat up to 1100 people per year using the most cost-effective
techniques.
Cost,
Technique
$/Enrollee % Quitting
Treatment
Capacity per Year
Acupuncture
700
9
250
Subliminal message
150
1
500
Aversion therapy
1700
10
200
Out-patient clinic
2500
39
400
In-patient clinic
2800
41
550
Nicotine replacement therapy (NRT)
1300
20
100
Transcribed Image Text:9.48 There are a number of techniques to help people stop smoking, but their cost and effectiveness vary widely. One accepted measure of effectiveness of a program is "percentage of enrollees quitting." The table in this problem shows several techniques touted as effective stop-smoking methods, some historical data on the approximate cost of each program per person, and the percentage of people smoke-free 3 months after the program ended. The Cancer Society provides annual cost-offset funding to cancer patients so more people can afford these programs. A large clinic in St. Louis has the capacity to treat each year the number of people shown. If the clinic plans to submit a proposal to the Cancer Society to treat a specified number of people annually, estimate the amount of money the clinic should ask for in its proposal to do the following: (a) Conduct programs at the capacity level for the technique with the lowest cost-effectiveness ratio. (b) Offer programs using as many techniques as possible to treat up to 1100 people per year using the most cost-effective techniques. Cost, Technique $/Enrollee % Quitting Treatment Capacity per Year Acupuncture 700 9 250 Subliminal message 150 1 500 Aversion therapy 1700 10 200 Out-patient clinic 2500 39 400 In-patient clinic 2800 41 550 Nicotine replacement therapy (NRT) 1300 20 100
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