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The familywise error rate of a simultaneous confidence band for the incremental net health benefit

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  • Morris Meisner
  • Eugene M. Laska
  • Carole Siegel
  • Joseph Wanderling

Abstract

Interest in the use of net health benefit in cost‐effectiveness analysis derives from its optimality property for decision‐making. A description of the results of an economic evaluation of health care interventions is incomplete if it does not include point and interval estimates of this outcome measure. A simultaneous confidence band for the incremental net health benefit, INHB(λ), for all λ may be obtained by forming a confidence interval based on student's t statistic, and letting the willingness‐to‐pay value, λ, run over all values. The familywise error rate (FWER) of the simultaneous confidence band is the probability that the confidence interval does not cover the true INHB(λ) for some value of λ. We show that the FWER equals P(T2>t2), where T2 follows Hotelling's central distribution and that the simultaneous confidence band does not cover the true INHB(λ) if and only if a T2 based confidence ellipsoid does not cover the true mean c–e vector. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • Morris Meisner & Eugene M. Laska & Carole Siegel & Joseph Wanderling, 2002. "The familywise error rate of a simultaneous confidence band for the incremental net health benefit," Health Economics, John Wiley & Sons, Ltd., vol. 11(3), pages 275-280, April.
    • Handle: RePEc:wly:hlthec:v:11:y:2002:i:3:p:275-280
    DOI: 10.1002/hec.656
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    References listed on IDEAS

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    1. Eugene M. Laska & Morris Meisner & Carole Siegel & Aaron A. Stinnett, 1999. "Ratio‐based and net benefit‐based approaches to health care resource allocation: proofs of optimality and equivalence," Health Economics, John Wiley & Sons, Ltd., vol. 8(2), pages 171-174, March.
    2. Daniel F. Heitjan, 2000. "Fieller's method and net health benefits," Health Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 327-335, June.
    3. Aaron A. Stinnett & John Mullahy, 1998. "Net Health Benefits," Medical Decision Making, , vol. 18(2_suppl), pages 68-80, April.
    4. Eugene M. Laska & Morris Meisner & Carole Siegel, 1997. "Statistical Inference for Cost–Effectiveness Ratios," Health Economics, John Wiley & Sons, Ltd., vol. 6(3), pages 229-242, May.
    5. Aaron A. Stinnett & John Mullahy, 1998. "Net Health Benefits: A New Framework for the Analysis of Uncertainty in Cost-Effectiveness Analysis," NBER Technical Working Papers 0227, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Elamin H. Elbasha, 2005. "Risk aversion and uncertainty in cost‐effectiveness analysis: the expected‐utility, moment‐generating function approach," Health Economics, John Wiley & Sons, Ltd., vol. 14(5), pages 457-470, May.

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