Cost Benefit Analysis Coursework

Cost Benefit Analysis
Name:
Subject
Date of Submission
Cost Benefit Analysis
Introduction
According to Muennig (2012), the population of Hispanic/Latinos who are currently based in the US is more than 50million, which makes approximately 16 percent of the entire population. Further, a study of Hispanics shows that the average reported cases of type 2 Diabetes is 16.9 percent while the average reported cases of type 2 Diabetes among whites is 10 percent. This creates the urge to innovate better ways of curbing the disease. Additionally, the number of victims rose with the rise in ages, for the Hispanics women above 70, the percentage of victims if more than 50 percent (Muennig, 2012)
In an attempt to provide better, easier, and faster ways to control the disease, a group of scientists developed a mobile application called the Glucose Buddy. The application provides victims with free ways to manage diabetes. Simply put, it provides users with information on the type of food to eat, and the types of medication to take. In addition, the application keeps track of victims’ blood glucose, blood pressure, and body weight (Consumer Health Information Corporation, 2011). In order to ensure the success of the application, it is necessary to conduct a cost benefit analysis on the project.
Cost benefit analysis is a mathematical process that determines the financial ramifications of undertaking a project with respect to the benefits of the project. It enables the management devote sufficient resources for a desired maximum effect on the target population. In order to conduct a cost benefit analysis correctly, professionals need information on the cost of starting and running a project and the expected returns of the project (Honneycutt, 2012). In this case, we will use the information from the cost incurred in paying the staff, training the staff, buying equipment and other minor costs. The benefits of the project can be approximated.
Methodology
According to Cellini and Kee (2010), Cost Effectiveness ratio = Total Cost/Units of Effectiveness. Costs in our case will be Certified Diabetes Educators fee for professionals who provided information updated in the application, wages for the team that manages the ap...