Respuesta :
If we use Plan A, to start with drug 1, we spend $90. Then in the event that drug 1 did not work (1 - 85% = 15% chance), we spend $65 more for drug 2. This is an expected value of $90 + (0.15)($65) = $99.75.
If we use Plan B, to start with drug 2, we spend $65. And if it does not work (1 - 70% = 30% chance), we spend $90 more for drug 2. This is an expected cost of $65 + (0.3)($90) = $92
Therefore, based on the overall cost of treatment, plan B should be selected over plan A. (The probabilities will actually be the same after both drugs have been tried, in either order.)
If we use Plan B, to start with drug 2, we spend $65. And if it does not work (1 - 70% = 30% chance), we spend $90 more for drug 2. This is an expected cost of $65 + (0.3)($90) = $92
Therefore, based on the overall cost of treatment, plan B should be selected over plan A. (The probabilities will actually be the same after both drugs have been tried, in either order.)
Answer: Based on the overall cost of treatment, plan B should be selected over plan A.
Step-by-step explanation: