Rate-to-Probability ConversionRate-Probability Transformation, Rate-Based Probability Estimation
The mathematical transformation converting a continuous-time hazard rate into the probability of an event occurring within a discrete time interval.
Economic Modelling
Terms for building and checking decision models, including decision trees, Markov models and simulation methods.
- Topic: Economic Modelling
- 40 terms
- Editor reviewed
State Transition ModelSTM, State-Transition Modelling
A general term for a decision-analytic model, such as a Markov model, representing disease progression as movement between defined health states.
System Dynamics ModelSD Model, System Dynamics Simulation
A modelling approach representing a complex system using stocks, flows, and feedback loops to capture how it evolves through internal dynamics.
Terminal NodeLeaf Node, End Node
The endpoint of a branch within a decision tree, where no further events are attached and final cost and outcome values are recorded.
Time HorizonAnalytic Horizon, Evaluation Period
The span of time over which an economic evaluation captures relevant differences in costs and outcomes among the options being compared.
Transition MatrixProbability Matrix, Markov Transition Table
A transition matrix is an ordered array of conditional probabilities that specifies movement among mutually exclusive states over a defined time interval.
Transition ProbabilityMove Probability, Cycle Transition Chance
A transition probability is the conditional chance of moving from a specified starting state to a specified destination state during a defined time interval.
Tunnel StateTemporary State Sequence, Tunnel Markov State
A modelling technique creating temporary, time-specific states a patient passes through in sequence, letting a Markov model approximate time-dependent risk.