CASE STUDY 4: Advertising Campaign Focused on Reducing Domestic and Family Violence. The Queensland government is concerned over increasing domestic and family violence rates. To address the issues the Queensland Government has implemented a Prevention Strategy. As part of this strategy, the Government is considering an advertising campaign. The Queensland government has asked for a preliminary CBA report on the potential ad campaign.


This Preliminary CBA Report is to be conducted by a group comprising 4 students.   CBA Group Report worth: 25% Mode: Written report, presented to a professional standard as per template Purpose of assessment: Provide evidence of students’ understanding of CBA in the context of a real world problem.

Note: Students may add lines as required

Project Title
The title of the project should be clear and concise.
  Signatures I have reviewed the information contained in this Group Report and agree with the contents Name Student number Signature Date                                
Table of contents
  Insert page number
1Executive Summary 
2Introduction and Background 
3Steps of a Cost Benefit Analysis 
 3.1. Specify the set of alternative projects 
 3.2. The perspective: Whose benefits and costs count? 
 3.3. Identify impact categories, catalogue them and select measurement indicators 
 3.4. Predict the impacts quantitatively over the life of the project 
 3.5. Monetize all impacts 
 3.6. Discount benefits and costs to obtain present values 
 3.7. Compute NPV of each alternative 
 3.8. Perform sensitivity analysis 
4Matters for Consideration of the proposed CBA 
5List of references 
Insert definitions of terms used in the report that require clarification
1. Executive Summary
Provide a brief overview of the project
2.  Introduction and Background
Provide a brief overview background of the project.   Define the problem: The study problem must be identified at the outset of any analysis. A clearly stated problem defines the objective of the study. At this initial stage of the study you must consider: •             what questions need to be answered, and •             which aspects of the problem need to be explained. Clarify the scope of the study: Target population, setting and location, time horizon, assumptions.

In the following subsections you are expected to explain the basic steps of the CBA

in the context of your project. You are not required to show values.

3.1. Specify the set of alternative projects (Step 1)
The scope of the study and the variety of outcomes to be included are determined to a large extent by the nature of the projects under consideration. Define and explain the status quo and the alternative project
Status Quo/Base Case:
Alternative Project:
3.2. The perspective: Whose benefits and costs count (Step 2)
Usually cost benefit analyses are conducted from a societal perspective. Thus all benefits and costs are considered. The results then indicate whether the benefits to the society as a whole outweigh the total costs of a proposed project. When using a narrower perspective, you should include only the benefits and costs relevant to that specific perspective. Explain the societal perspective. Define and explain the alternative perspective
Societal Perspective:
Alternative Perspective:
3.3. Identify impact categories, catalogue them and select measurement indicators (Step 3)
Identify all impact categories that should be included in the CBA. Catalogue these impacts as either costs or benefits.   Identify the measurement indicator units used for each impact. An ‘M’ or ‘T’ or ‘P’ is used instead of values to indicate that money, time or physical units that would be employed. An ‘I’ (intangible) indicates that an entry is not measureable.   Indicate the source of information (e.g. data bases and data sets) that would be used to quantify each impact.  
IMPACTSUnits (M,T,P,I)Source of information
3.4.  Predict the impacts quantitatively over the life of the project (Step 4)
Define the time frame and analytic horizon. The time frame and the analytic horizon are largely determined by the treatments or interventions under consideration. The time frame is the specific period in which the intervention was actually applied. The analytic horizon is the period over which costs and benefits resulting from the intervention are measured. The analytic horizon of the study should be long enough to include all significant costs (positive and negative). Both time frame and analytic horizon influence the type and value of costs and benefits included in the analysis.
3.5. Monetize all impacts (Step 5)
Indicate and explain the various data bases and sources of information that would be useful to monetize impacts. Identify important impacts that are difficult to monetize. How would you get around such issues? Do not show a dollar value but indicate how you would monetize impacts e.g. lives saved = value of statistical life* number of lives saved. 
3.6. Discount benefits and costs to obtain present values (Step 6)
Define the discount rate: Discounting makes it possible to compare benefits and costs that occur at different times by adjusting their values according to the time preference corresponding to the chosen perspective. The discount rate is one parameter that can be varied in a sensitivity analysis to test its impact on the results of analysis and to make the results of studies based on different discount rates comparable.   Include the relevant formulas appropriate for the project. What are the ongoing costs and benefits to be discounted?
3.7. Compute NPV of each alternative (Step 7)
Include the relevant formulas appropriate for the project
3.8. Perform sensitivity analysis (Step 8)
Explain method used in sensitivity analysis. Why was this method chosen?   Identify the variables chosen for Sensitivity Analysis. Why were these variables chosen?
4.  Matters for Consideration of the proposed CBA
Insert relevant information in the table below relating to the proposed NOT preliminary CBA. That is, identify possible challenges if the CBA were to go ahead. 
Potential challenges of the evaluation Solutions to potential challenges
5.  List of references
Throughout the report use number referencing – this will reduce the word limit.  Example: ‘The average statistical value of life for the Australian population, suggested by a number of meta-analyses of empirical estimates, is about $4 million [2].’   List all references used to inform this preliminary CBA. Style of reference list – example : ‘[1] Mittelman MS, Haley WE, Clay OJ, Roth DL. Improving caregiver well-being delays nursing home placement of patients with Alzheimer disease. Neurology 2006;67:1592–9. [2] Boardman AE, Greenberg DH, Vining AR, Weimer DL. Cost-benefit analysis: concepts and practice. 3rd ed. Upper Saddle River, NJ: PrenticeHall; 2006.’

6. Contribution
Provide a brief overview of each student’s contribution to this project. How many scheduled group meetings during the workshop sessions did each student attend? 
NameContribution to projectNumber of meetings attended

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