Functions & Formulae

Each applied formula has its own function page, with a signature, implementations, and tests.

Net monetary benefit function

n(lambda,E_j,C_j) = NMB_j

Values an option's expected health effect in money at a stated cost-effectiveness threshold and subtracts its expected cost, placing health and cost on one monetary scale.

  • Option-level net monetary benefit

    NMB_j = lambda * E_j - C_j

    Calculates the net monetary benefit of a single option at threshold lambda from that option's own expected effect and expected cost.

  • Incremental net monetary benefit

    INMB = lambda * Delta_E - Delta_C

    Calculates the difference in net monetary benefit between an intervention and its comparator at threshold lambda. A positive value favours the intervention in every quadrant of the cost-effectiveness plane.

  • Maximum net monetary benefit decision rule

    j* = argmax_(j in J) (lambda * E_j - C_j)

    Selects, at a stated threshold, the mutually exclusive option with the highest net monetary benefit. The rule reaches the same choice as a correctly conducted fully incremental analysis without ordering options or removing dominated ones.