Use the Information for the Question(s)below

question 13

Multiple Choice

Use the information for the question(s) below.
Big Cure and Little Cure are both pharmaceutical companies.Big Cure presently has a potential "blockbuster" drug before the Food and Drug Administration (FDA) waiting for approval.If approved,Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure.Little Cure has 10 separate less important drugs before the FDA waiting for approval.If approved,each of Little Cure's drugs would produce $100 million in net income for Little Cure.The probability of the FDA approving a drug is 50%.
-What is the expected payoff for Little Cure's ten drugs?

• A)$500 million
• B)$100 million
• C)$1 billion
• D)$0

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Definitions:

Evolutionistic Theoretical Approach

An approach in various disciplines that uses concepts of evolution to explain changes and developments, suggesting that entities progress through a series of gradual changes.

Religious Beliefs

Systems of faith and worship; the conviction in the existence of a higher power or powers.

Fundamentalism

A strict adherence to specific theological doctrines typically in a reaction against modernist theories, often associated with a literal interpretation of religious texts.

Reactionary

A political viewpoint that advocates for the restoration of previous political, social, or economic conditions.