= Incremental net monetary benefit
{title2=$\operatorname{INMB}(\lambda)=\lambda\Delta E-\Delta C$}
= Incremental net benefit
{synonym}
At a specified willingness-to-pay threshold $\lambda$, the <incremental net monetary benefit> is the value of the effect increment minus the cost increment. It avoids dividing by a potentially near-zero or negative effect estimate. For estimates with <variances> $v_E,v_C$ and <covariance> $v_{CE}$, its estimated <variance> is $\lambda^2v_E+v_C-2\lambda v_{CE}$. A <normal approximation> therefore gives a <confidence interval> directly on the net-benefit scale. The economic sign criterion does not require a positive effect increment.
Back to article page