Expected profit contribution

Assignment Help Basic Statistics

Reference no: EM1390578

A pharmaceutical company has determined that if a new cholesterol-reducing drug is manufactured (introduced to the market) the following probability distribution will describe this drug's contribution to the company profits during the next six months.

Profit Contribution Probability of Profit contribution
($30,000) 0.2
$50,000 0.5
$200,000 0.3

The company management has decided to market this product if the expected contribution to profit for the next six months is more than $90,000. Based on the information given above, should the company begin manufacturing the new drug?

Reference no: EM1390578

Questions Cloud

Express lens from which the light emerges : A positive image distance means that image is formed on the side of the lens from which the light emerges.

The product was not patentable because it was too similar : The product was not patentable because it was too similar to other existing technologies. Major corporations saw his success and have now entered the market with competing products

Chain of two rna nucleotides : DIagram a chain of two RNA nucleotides. Use R for the nitrogenous bases. Then, briefly describe why RNA is usually single-stranded and why it is less stable than DNA.

Define magnitude of objects angular momentum about origin : A 1.4 kg object at x = 2.00 m, y = 3.10 m moves at an angle 45Â° north of east. Compute the magnitude of the object's angular momentum about the origin.

Expected profit contribution : A pharmaceutical company has determined that if a new cholesterol-reducing drug is manufactured (introduced to the market) the following probability distribution will describe this drug's contribution to the company profits during the next six mon..

Finding required bidirectional origins of synthesis : The D. melanogaster genome consists of approximately 1.7 x 108 base pairs. If DNA synthesis occurs at a rate of forty base pairs per second, and the entire genome is replicated in ten minutes,

Fallen off greatly at your restraurant due to of the crisis : Assume that you own a very upscale restaurant (think shearwater at the hotel del Coronado or the grant grill at the us grant hotel). Business has fallen off greatly at your restraurant because of the economic crisis.

Find the direction of the wreckage after the impact : The car and minivan collide and stick together. Suppose the direction of the wreckage after the impact is 42.0° above the x axis.

Problem on ethics-morality and leadership : Did AWB executives abuse their position in making payments to the Iraqi regime in contravention of the UN sanctions?The foreign corruption practices act, and the equivalents in many countries, make it a crime to pay bribes to foreign government of..

User Account

All Pages