_____________ involves going beyond knowledge (real or estimated) of program impact and attempting to determine how cost effective the program is at what it does and how it compares (in efficiency) to other programs, and then, given this knowledge, deciding whether the program is worth its costs and/or if the program should be replaced with another more efficient program.
Efficiency Assessment
Efficiency Assessment is the approach typically taken by ______. It is very important, however, that all evaluators (including you!) understand how to think about efficiency assessment because of the importance of costs and budgets and resource allocation in every organization
economists
Who said this, “perhaps the greatest value of efficiency analysis is that it forces us to think in a disciplined fashion about both costs and benefits….Most other types of evaluation focus mainly on the benefits.”
Peter Rossi
What are the 2 major types of efficiency assesment?
Benefit Cost analysis and assessment
Cos-effectiveness analysis and assessment
In ___________,monetary (i.e., dollar) values are estimated for the resources used (i.e., costs) and for the program effects (i.e., benefits), and these two components ________ are then compared to determine the worth of a program.
Benefit-cost analysis or cost-benefit analysis
costs and benefits
Key Idea 1: Benefit-cost analysis can be carried out according to different perspectives, and you will need to _____________ when conducting a benefit-cost analysis.
select a perspective
Three common accounting perspectives:
Key Idea 2: The evaluator must list all costs and benefits and then quantify these costs and benefits.
The costs and benefits need to be converted to dollar units, and any benefits or costs occurring in the future must be discounted (i.e., converting them to their present value).
present value in this context is the value of a future benefit or cost in present dollar values
benefit-cost ratio
the total dollar benefits divided by the total dollar costs, where any costs and benefits that may occur in the future are converted to their discounted or present values.
A benefit-cost ratio of 1 is the break even point; a benefit-cost ratio that is less than one means that the costs are greater than the benefits; a benefit-cost ratio that is greater than one means that the benefits are greater than the costs (i.e., the desired result).
A benefit-cost ratio of 1 is the b_______; a benefit-cost ratio that is less than one means that the costs are greater than the benefits; a benefit-cost ratio that is greater than one means that the benefits are greater than the costs (i.e., the desired result).
break even point
A second way to compare the costs and benefits is to subtract the total costs from the total benefits and determine the __________. If the _______ is positive, the benefits are greater than the costs,
Net benefits
A third way to compare costs and benefits is the __________is popular in business and it is a measure of the profit made by the program calculated as a percentage of money spent on the program.
return on investment index
(a) subtract total costs from the gross or total benefits and (b) divide the number resulting from step “a” by the total costs
prospective benefit-cost analysis (or ex ante analysis) is done before or during the planning or development of a program
Prospective benefit-cost analysis
Prospective analysis is important in helping decision makers to decide whether to develop a full-fledged version of a program idea or to abandon the program idea.
before spending money, one should consider the potential benefits and costs.
absolute benefit-cost analysis
absolute benefit-cost analysis
comparative benefit-cost analysis
comparative benefit-cost analysis
———————— is based on cost and effect data (rather than cost and benefit data as in benefit-cost analysis). In Peter Rossi’s words, in cost-effectiveness analysis the evaluator determines “the efficacy of a program in achieving given intervention outcomes in relation to the program costs.”
Cost-effectiveness analysis
STEPS FOR A COST EFFECTIVENESS ANALYSIS
STEPS FOR A COST EFFECTIVENESS ANALYSIS
Why would one want to conduct a cost-effectiveness analysis rather than a benefit-cost analysis?
The answer is because it is difficult to convert many kinds of benefits to dollar units and, therefore, cost-effectiveness analysis is more practical and less controversial.
What are the 2 categories that quantitative designs can be broken into?
_________ means that an evaluator has controlled the effects of variables other than treatment, in order to say with confidence that the results occurs because the participants experienced the program or activity that is the independent variable.
Internal Validity
__________ means that the sample is representative of the population, and therefore that if the treatment is applied with another group of people from that population under similar circumstances, it should be effective there as well.
External validity