. Calculate the expected cost at each chance node in the decision tree.

You have two options (antibiotic A and antibiotic B) for the treatment of infection. Each antibiotic has two
possible outcomes (clinical success of treatment and failure of treatment). Some of patients who receive
antibiotics may experience adverse events regardless of the outcomes. Those who experience adverse
events will be treated for those events.

Now, you’ll decide which antibiotic you’ll recommend for your patients. All the information you need to
make this decision is shown below:

1. Assign the relevant cost at each terminal node in the decision tree.

2. Calculate the expected cost at each chance node in the decision tree.

3. Calculate the ICER.

4. Given a willingnesstopay of $1000 per extra success, which antibiotic would you recommend to your
patients? Justify your answer