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Although the new cochleae manufactured by Medotech will cost more than

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Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 28 Oct 2019, 21:23
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C
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Although the new cochleae manufactured by Medotech will cost more than twice as much as the cochlear implants now in use, Medotech implants should still be cost-effective. Not only will surgery and recovery time be reduced, but Medotech cochlear replacements should last longer, thereby reducing the need for further hospital stays.

Which of the following must be studied in order to evaluate the argument presented above?

A. The amount of time a patient spends in surgery versus the amount of time spent recovering from surgery.
B. The amount by which the cost of producing Medotech cochlear replacements has declined with the introduction of the new technique for producing them.
C. The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use.
D. The degree to which the use of Medotech replacements are more carefully manufactured than are the replacements now in use,
E. The amount by which Medotech will drop in cost as the production procedures become standardized and applicable on a larger scale.

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Re: Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 28 Oct 2019, 22:54
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Although the new cochleae manufactured by Medotech will cost more than twice as much as the cochlear implants now in use, Medotech implants should still be cost-effective. Not only will surgery and recovery time be reduced, but Medotech cochlear replacements should last longer, thereby reducing the need for further hospital stays.

conclusion: Medotech implants should still be cost-effective

reasoning: Medotech cochlear replacements last longer= reducing further hospital stays= cost effective
hospitals stays are more expensive that the cost difference between the two different implants

possible underlying assumptions:
1) Hospital stays are expensive, and no other factors other than hospital stays influence expenses for the patients wrt Medotech implants
2) present Cochlear implants are not more cost effective in other ways to compensate more than required for the hospital visits as compared to Medotech implants
3) hospital stay costs are way more than the difference in the purchase cost between the two kinds of impants


with this reasoning in mind lets attack the options:

A. The amount of time a patient spends in surgery versus the amount of time spent recovering from surgery.
the amount spent in surgery is completely irrelevant to the argument, it can be more or less or the same for the two implants, therefore this option is irrelevant

B. The amount by which the cost of producing Medotech cochlear replacements has declined with the introduction of the new technique for producing them.
how is production cost relevant with cost savings wrt hospital stays? this is way out of scope with the argument and our initial reasoning

C. The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use.

This is the correct answer!! as the need for another surgery is reduced so are the costs wrt the hospital stays after the surgery!


D. The degree to which the use of Medotech replacements are more carefully manufactured than are the replacements now in use,

the replacements could still be better or good enough even if they are not as carefully manufactured

E. The amount by which Medotech will drop in cost as the production procedures become standardized and applicable on a larger scale.

suppose Medotech drops the cost by 1% then it is still more expensive and this option still doesnt provide us with a reason as to how Medotech is still more cost effective despite being expensive

C is the correct option!
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Re: Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 28 Oct 2019, 23:14
Cost of new cochleae > 2 * cost of existing cochleae.
Yet new cochleae still cost-effective because surgery and recovery times will reduce, and new cochleae will last longer, leading to fewer hospital stays.

The emphasis here is cost-effectiveness. The best answer choice must be one that relates to the benefits of the new cochleae in terms of cost.

The choice is between options C and option E.

Option C: The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use.

Option E: The amount by which Medotech will drop in cost as the production procedures become standardized and applicable on a larger scale.

Between C and E, only E relates to cost. Merely knowing the degree to which the use of the new cochleae replacements is likely to reduce the need for repeat surgery is not enough to determine cost effectiveness. We need to find a way to associate cost with the reduction in repeat surgery associated with the new cochleae. So, option C is inferior compared with option E. This is because option E provides the amount by which Medotech will drop in cost as the production procedures become standardized and applicable on a larger scale. Option E talks about cost savings when the new cochleae is adopted, and if such a piece of information is available, then it will be very useful to evaluate the argument.

The answer in my view is option E.
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Re: Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 29 Oct 2019, 00:09
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IMO: C

Conclusion: Although New Cochleae manufactured by Medotech cost more but are cost effective because:
1) It will reduce surgery and recovery time
2) It will last longer than the regular cochleae

Which of the following must be studied in order to evaluate the argument presented above?

A. The amount of time a patient spends in surgery versus the amount of time spent recovering from surgery. Comparing the time spent on surgery to recovery won't make any difference to the conclusion.

B. The amount by which the cost of producing Medotech cochlear replacements has declined with the introduction of the new technique for producing them. There is no mention of new technique

C. The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use. This is important if the need for repeat surgery is not reduced than the cost impact of the new device will be higher and hence undesirable.

D. The degree to which the use of Medotech replacements are more carefully manufactured than are the replacements now in use. this will have no impact on the conclusion

E. The amount by which Medotech will drop in cost as the production procedures become standardized and applicable on a larger scale. this will have no impact on the conclusion
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Re: Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 29 Oct 2019, 03:30
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C. The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use.....This helps in evaluating how it is cost effective though it's of twice the cost....


OA:C

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Re: Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 29 Oct 2019, 08:21
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Conclusion;Not only will surgery and recovery time be reduced, but Medotech cochlear replacements should last longer, thereby reducing the need for further hospital stays.

Option C
The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use
use variance test
IMO C both strengthens and weakens the argument

Although the new cochleae manufactured by Medotech will cost more than twice as much as the cochlear implants now in use, Medotech implants should still be cost-effective. Not only will surgery and recovery time be reduced, but Medotech cochlear replacements should last longer, thereby reducing the need for further hospital stays.

Which of the following must be studied in order to evaluate the argument presented above?

A. The amount of time a patient spends in surgery versus the amount of time spent recovering from surgery.
B. The amount by which the cost of producing Medotech cochlear replacements has declined with the introduction of the new technique for producing them.
C. The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use.
D. The degree to which the use of Medotech replacements are more carefully manufactured than are the replacements now in use,
E. The amount by which Medotech will drop in cost as the production procedures become standardized and applicable on a larger scale.
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Re: Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 29 Oct 2019, 10:37
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Although the new cochleae manufactured by Medotech will cost more than twice as much as the cochlear implants now in use, Medotech implants should still be cost-effective. Not only will surgery and recovery time be reduced, but Medotech cochlear replacements should last longer, thereby reducing the need for further hospital stays.

Stimulus: Medotech implants will cost more but are still cost effective. They reduce the surgery and recovery time but should last longer reducing the need for further hospital stays. Inorder to evaluate the problem we need to know if by the use of new implants last longer than the old implants so that though they are expensive they are still cost effective.

Which of the following must be studied in order to evaluate the argument presented above?

A. The amount of time a patient spends in surgery versus the amount of time spent recovering from surgery.
B. The amount by which the cost of producing Medotech cochlear replacements has declined with the introduction of the new technique for producing them.
C. The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use. Correct this makes the cochlear replacements effective.
D. The degree to which the use of Medotech replacements are more carefully manufactured than are the replacements now in use,
E. The amount by which Medotech will drop in cost as the production procedures become standardized and applicable on a larger scale.

IMO C.
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Re: Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 29 Oct 2019, 20:21
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I would go for C.

A. Since Medotech cochlear replacement is reducing both surgery and recovery time, they can not be evaluating factors.
B. Cost of production is irrelevant to cost effectiveness assessment of patients
C. CORRECT ANSWER.
D. Being careful in production process is irrelevant to cost effectiveness assessment of patients
E. Reducing costs in production process is irrelevant to cost effectiveness assessment of patients.
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Re: Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 29 Oct 2019, 20:23
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C.

If probability of repeat surgery increases with Medotech cochlear replacement, cost for the patients will be DOUBLE for surgery. So, Medotech cochlear replacement will not be cost effective.

If probability of repeat surgery decreases with Medotech cochlear replacement, Medotech cochlear replacement will be cost effective because of less time staying in hospital.
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Re: Although the new cochleae manufactured by Medotech will cost more than  [#permalink]

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New post 29 Oct 2019, 20:56
Bunuel wrote:

Competition Mode Question



Although the new cochleae manufactured by Medotech will cost more than twice as much as the cochlear implants now in use, Medotech implants should still be cost-effective. Not only will surgery and recovery time be reduced, but Medotech cochlear replacements should last longer, thereby reducing the need for further hospital stays.

Which of the following must be studied in order to evaluate the argument presented above?

A. The amount of time a patient spends in surgery versus the amount of time spent recovering from surgery.
B. The amount by which the cost of producing Medotech cochlear replacements has declined with the introduction of the new technique for producing them.
C. The degree to which the use of Medotech cochlear replacements is likely to reduce the need for repeat surgery when compared with the use of the replacements now in use.
D. The degree to which the use of Medotech replacements are more carefully manufactured than are the replacements now in use,
E. The amount by which Medotech will drop in cost as the production procedures become standardized and applicable on a larger scale.


Official Explanation



Correct Answer: C

The best answer is C. To evaluate the argument it must be determined whether these savings will compensate for the increased cost. Therefore, study of the expected reduction in the need for further hospital stays is needed.
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Re: Although the new cochleae manufactured by Medotech will cost more than   [#permalink] 29 Oct 2019, 20:56
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