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The effect size in uncertainty analysis.

Jan J Barendregt1

  • 1School of Population Health, University of Queensland, Herston, QLD, Australia. j.barendregt@sph.uq.edu.au

Value in Health : the Journal of the International Society for Pharmacoeconomics and Outcomes Research
|July 28, 2010
PubMed
Summary
This summary is machine-generated.

Parametric bootstrapping in health economic evaluations can overestimate relative risks. This study presents two correction methods, with the second recommended for accurately reflecting uncertainty intervals in model-based analyses.

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Area of Science:

  • Health economics
  • Biostatistics
  • Statistical modeling

Background:

  • Model-based health economic evaluations commonly use parametric bootstrapping for uncertainty analysis.
  • Specifying probability distributions for uncertain model variables is a prerequisite for this method.
  • A common assumption for intervention effect sizes (relative risk) is a lognormal distribution.

Purpose of the Study:

  • To address the bias in bootstrap draws from lognormal distributions where the mean exceeds the true relative risk.
  • To evaluate two distinct correction methods for this overestimation bias.
  • To compare the advantages and disadvantages of the proposed correction techniques.

Main Methods:

  • Investigated two methods to correct the overestimation of relative risk in parametric bootstrapping.
  • Analyzed the properties of bootstrap draws, specifically the mean and uncertainty interval width.
  • Compared the outcomes of the correction methods against standard lognormal distribution assumptions.

Main Results:

  • Both presented methods successfully correct the bootstrap mean to equal the true relative risk.
  • The first correction method results in an uncertainty interval narrower than the confidence interval.
  • The second correction method preserves the width of the uncertainty interval, matching the confidence interval.

Conclusions:

  • The second correction method is preferred for parametric bootstrapping of relative risks in health economic evaluations.
  • This method ensures accurate representation of uncertainty without artificially narrowing the interval.
  • Accurate uncertainty quantification is crucial for reliable health economic decision-making.