The formula to calculate the Cost Effectiveness (CE) is:
\[ \text{CE} = \frac{C}{E} \]
Where:
Cost effectiveness is a measure used to determine the economic value of an investment, treatment, or intervention. It is calculated by dividing the cost by the effectiveness, which can be measured in various units such as lives saved, cases prevented, or quality-adjusted life years (QALYs). This measure helps decision-makers to compare and prioritize different options based on their economic efficiency.
Let's assume the following values:
Using the formula to calculate the Cost Effectiveness:
\[ \text{CE} = \frac{10000}{50} = 200 \text{ USD/unit} \]
The Cost Effectiveness is $200 per unit.