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The familywise error rate of a simultaneous confidence band for the incremental net health benefit
Author(s) -
Meisner Morris,
Laska Eugene M.,
Siegel Carole,
Wanderling Joseph
Publication year - 2002
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.656
Subject(s) - confidence interval , mathematics , lambda , statistics , confidence and prediction bands , statistic , confidence region , cover (algebra) , coverage probability , confidence distribution , physics , mechanical engineering , optics , engineering
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 ( T 2 > t 2 ), where T 2 follows Hotelling's central distribution and that the simultaneous confidence band does not cover the true INHB( λ ) if and only if a T 2 based confidence ellipsoid does not cover the true mean c – e vector. Copyright © 2002 John Wiley & Sons, Ltd.