Use the Information for the Question(s)below

question 19

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 standard deviation of Big Cure's average net income for their new blockbuster drug?

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

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Definitions:

Decline

A decrease in the importance, quantity, or intensity of something.

Economically Equivalent

Economically equivalent means having the same financial value or cost, despite possibly differing in form or method.

Missing Value

An absent or unrecorded piece of data in a dataset or equation.

Scheduled Payments

Regular fixed payments made over a period according to a repayment plan, typically for loans or mortgages.