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Tools for Decision Making Sections
Author Bio
Introduction
Part I
Expected Value Decision Making
Case Study 2: Patient History
Using a Decision Tree
Assigning Utility
Expected Value and QALYs
Sensitivity Analysis
Currently selected section: Conclusions: Case Study 2
Part III

References


Chapter 14: Tools for Decision Making: Conclusion - Case Study 2
         Expected value decision making can help in choosing between treatment options by averaging together the outcomes experienced by many patients. However, each patient only experiences one outcome. Expected value decision making increases the odds that the patient will experience a good outcome. It does not guarantee a good outome.

As you have seen in the scenario of the injured rock climber, the difference in the expected value of the decision alternatives depends on the values assigned to the probabilities and utilities in the decision tree. Given the opportunity, two patients might assign very different values to different outcomes. Furthermore, a probability might vary from patient to patient. This is why it is important to incorporate sensitivity analysis into expected value decision making.

Sensitivity analysis requires a lot of computations, especially when you allow the value of an uncertain parameter to take on every value in the range in order to graph the relationship between the value of the parameter and the expected outcomes of the three decision alternatives. Therefore, people who do decision analysis rely on computer programs that allow you to represent a decision tree, attach values to the parameters of the decision tree, and perform and then graph sensitivity analysis.

Sensitivity analysis is fun. Doing it gives you a feeling for the power of decision analysis. If you are interested in learning more about sensitivity analysis, the author of this chapter recommends visiting the following Web site where you can play with the injured rock climber model:

www.treeage.com/demos/actxdemo.htm

If you visit this Web site, you can:

  • Do sensitivity analysis and see how the preferred option changes as you adjust different parameters of the model.
  • Access and download a small version of a program to create decision trees. (Have fun!)

Note: The computational model at this Web site is slightly different than the one illustrated in this chapter, so the expected values are slightly different.

 


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