Expected Value Analysis
An approach to decision-making under uncertainty that evaluates options based on the probability-weighted average of their possible outcomes.
Encyclopaedia
Explore comprehensive, evidence-informed explanations of key health economics concepts, including their development, application and relationships to other concepts. Published entries are validated through human expert review.
Expected Value of Partial Perfect Information
The maximum value of completely resolving uncertainty in a specific subset of a model's parameters, while other parameters remain uncertain.
Expected Value of Perfect Information
The maximum amount a decision-maker should pay to eliminate all uncertainty surrounding a technology decision, comparing outcomes under perfect versus existing information.
Expected Value of Sample Information
The expected benefit of conducting a specific, finite study with a defined sample size and design, only partially resolving existing uncertainty.
Experience Rating
A method setting premiums based on the actual historical claims experience of a specific individual or group, rather than a community average.
Experimental Design
The systematic planning of an empirical study to allow valid causal inference, including decisions about randomisation, control groups, and study conditions.
Exploratory Factor Analysis
A technique identifying an underlying set of factors explaining correlations among observed variables, without a predetermined hypothesis, unlike confirmatory factor analysis.
Exponential Distribution
A probability distribution characterised by a constant hazard rate over time, used to model event timing when risk is assumed not to change.
Exponential Model
A survival model assuming time-to-event data follow an exponential distribution, implying a constant hazard rate throughout the modelled time horizon.
Extended Cost-Effectiveness
A form of economic evaluation that extends standard cost-effectiveness analysis by incorporating financial risk protection and the distribution of costs and benefits by income.
Extended Dominance
A situation where an intervention is not dominated by any single alternative but is inferior to a combination of two other options.
Extended Dominance Analysis
The process of identifying interventions subject to extended dominance by comparing each option's ICER against that of the next most effective alternative.
Externality
An externality is a cost or benefit arising from production or consumption that affects third parties and is not fully reflected in the decision-maker’s private costs or benefits.
Extrapolation
The process of projecting a clinical outcome, such as survival, beyond a trial's observed follow-up period, typically using a fitted parametric model.
Extreme Value Analysis
A statistical approach characterising the behaviour of the most extreme, rather than typical, values a variable can take, based on extreme value distribution theory.
F-Distribution
A continuous probability distribution arising from the ratio of two independent chi-square variables divided by their degrees of freedom, underlying analysis of variance.
Factor Analysis
A technique identifying a smaller number of underlying, unobserved factors accounting for the pattern of correlations among a larger set of measured variables.
Factor Loading
In factor analysis, a value indicating the strength of the relationship between an observed variable and an underlying latent factor.
Factor Rotation
A technique transforming an initial factor solution into a more interpretable structure, typically by maximising the contrast between high and low loadings.
Factorial Design
A trial design evaluating two or more interventions simultaneously by assigning participants to every possible combination, revealing each effect and any interaction.