When BenMAP runs the APV Configuration, it will generate a valuation result for each

valuation method you select by running the valuation method’s valuation functions on the

incidence results for which they were selected. You do not need to select valuation methods for

every incidence result - incidence results without any valuation methods will simply be ignored

when valuation results are generated, aggregated, and pooled.

Because valuation functions have uncertainty associated with them, generating valuation results is

fairly complicated. The procedure used depends on whether the incidence results being used

were generated in Point Mode or with Latin Hypercube Points (see the chapter on Incidence

Aggregation, Pooling, and Valuation

BenMAP User's Manual 184 October 2012

Estimation for details on Point Mode and Latin Hypercube Points).

In Point Mode, BenMAP simply runs the valuation functions once using the point estimate of the

incidence result and the mean of the valuation function as inputs.

With Latin Hypercube Points, on the other hand, BenMAP generates one hundred percentile

points (from the 0.5th percentile to the 99.5th percentile) to represent the distribution of the

inputs to the valuation function. To get the value of the health incidence, BenMAP multiplies each

combination of values from the incidence result, Latin Hypercube, with each of the hundred

valuation points, and puts the results into a holding container. (For example, if the incidence

result has 10 Latin Hypercube Points and there are 100 valuation points, then the holding

container will have 1,000 values.) Finally, the holding container is sorted low to high and binned

back down to 100 Latin Hypercube points (representing the 0.5th percentile to the 99.5th

percentile of the economic value of the incidence).

 

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