Table I.
Example Derivation of the Cost‐Effectiveness Ratio (CER) for one Chemical and Toxicity‐Testing Methodology
| Year | Event | Cost of Testing (Millions) | Discounted Cost of Testing (Millions) | Decision Making Value | Discounted Decision‐Making Value |
|---|---|---|---|---|---|
| 1 | Performing the test | $5.0 | $5.0 | ||
| 2 | $0.0 | ||||
| 3 | $0.0 | ||||
| 4 | $0.0 | ||||
| 5 | $0.0 | ||||
| 6 | $0.0 | ||||
| 7 | $0.0 | ||||
| 8 | $0.0 | ||||
| 9 | $0.0 | ||||
| 10 | $0.0 | ||||
| 11 | Using the data to assess risk | $0.0 | 0.9 | 0.670 | |
| 12 | $0.0 | 0.9 | 0.650 | ||
| 13 | $0.0 | 0.9 | 0.631 | ||
| 14 | $0.0 | 0.9 | 0.613 | ||
| 15 | $0.0 | 0.9 | 0.595 | ||
| 16 | $0.0 | 0.9 | 0.578 | ||
| 17 | $0.0 | 0.9 | 0.561 | ||
| 18 | $0.0 | 0.9 | 0.545 | ||
| 19 | $0.0 | 0.9 | 0.529 | ||
| 20 | $0.0 | 0.9 | 0.513 | ||
| Net present value of cost and outcomes | $5.0 | 5.88 | |||
| CER in millions of dollars per outcome | $0.85 | ||||