Question

Suppose two drugs are routinely used for treatment of a particular kidney disorder. Drug 1 is known to cure the disease 85% of the time and costs $90. Drug 2 is known to cure the disease 70% of the time and costs $65. The two drugs work independent of each other (that is, administration of one has no effect on the efficacy of the other). The two treatment plans are as follows:

Plan
a. Treatment with Drug 1—if not effective, treatment with Drug 2.
Plan
b. Treatment with Drug 2—if not effective, treatment with Drug 1.

Which statement is most correct in this situation?

a.Based on the overall probability of a cure, Plan A should be selected over Plan
b.
b.Based on the overall probability of a cure, Plan B should be selected over Plan
a.
c.Based on the overall cost of treatment, Plan A should be selected over Plan
b.
d.Based on the overall cost of treatment, Plan B should be selected over Plan
a.
e.Based on the probability of a cure and the cost of treatment, both plans are equivalent, so either can be selected.

Answer 1

Based on the overall probability of a cure, Plan B should be selected over Plan

Explanation:

According to the problem, Drug 1 has the higher probability to cure disease, with a 85%.

Knowing this, Plan B is the best option, because implies using Drug 2 if Drug 1 doesn't work, that means this plan used Drug 1 in first place, which has the higher probability to cure.

In other words, it would be better if they use Drug 1 first, because if cost $25, but it has higher chances to cure. Because, if the use Drug 2 first, there're chances to fail, and that would imply higher expenses.

Therefore, the right answer is "Based on the overall probability of a cure, Plan B should be selected over Plan"

Answer 2

The correct answer for the question that is being presented above is this one: "e.Based on the probability of a cure and the cost of treatment, both plans are equivalent, so either can be selected. Suppose two drugs are routinely used for treatment of a particular kidney disorder. Drug 1 is known to cure the disease 85% of the time and costs $90.