Which analysis is most difficult because it requires assigning a monetary value to outcomes?

• A. Cost Minimization Analysis
• B. Cost Effectiveness Analysis
• C. Cost Benefit Analysis
• D. Time Series Analysis

Answer: (C)

Turning outcomes into money is the hallmark challenge of cost-benefit analysis. In this approach, every benefit and cost—such as shorter illness duration, lives saved, improved quality of life, or avoided productivity losses—must be assigned a monetary value so they can be compared on a single scale. This requires techniques like willingness-to-pay or contingent valuation and sometimes shadow pricing for nonmarket goods, which are subjective and uncertain. That valuation step is what makes cost-benefit analysis more demanding than other methods: cost-effectiveness analysis uses outcomes in natural units (like cases avoided or life-years gained) and time series analysis is a statistical tool for tracking data over time, not a framework for monetizing outcomes. Cost minimization assumes equal outcomes and compares costs, so it avoids monetizing benefits altogether.