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Analyzing cost 

Analyzing cost
Analyzing cost

Dr. Henry A. Glick

, Dr. Jalpa A. Doshi

, Dr. Seema S. Sonnad

, and Dr. Daniel Polsky

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date: 05 March 2021

This chapter addresses statistical methods for analysing cost data. Specific issues include the importance of the sample/arithmetic mean in cost-effectiveness analysis, univariate parametric tests of means on both the raw and transformed scales, non-parametric tests including non-parametric bootstrapping, as well as multivariable linear regression and generalized linear models. Special attention is paid to the ‘retransformation problem’ that arises, for example, when using the log transformation of costs. New sections include a detailed discussion of the method of recycled predictions as well as a discussion of the analysis of preference scores.

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