Use the Information Below to Answer the Following Questions)

question 48

Multiple Choice

Use the information below to answer the following questions) . Below is a decision tree illustrating the R&D process for a new drug. Let us assume that if market is large, payoff is lognormally distributed with a mean of $4,900 million and a standard deviation of $1,000 million; if market is medium, payoff is lognormally distributed with a mean of $2,500 million and a standard deviation of $500 million; and if market is small, payoff is normally distributed with a mean of $1,800 million and standard deviation of
$200 million. Let us also assume that the cost of clinical trials is uncertain and estimates are modeled with a triangular distribution with a minimum of -$700 million, a most likely value of -
$550 million, and a maximum of -$500 million. Use 10,000 trials and a random seed of 1.
-What is the value of standard deviation obtained from the simulation results? [Hint: Choose the approximate value.]

• A) $ 119.1
• B) $ 116.1
• C) $ 105.7
• D) $ 94.4

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Definitions:

Labeling Theories

A perspective in sociology that suggests the labels or definitions applied to individuals or groups significantly affect both their self-identity and the perceptions others have of them, thus influencing their behaviors in society.

Phenomenological Theories

Philosophical approaches that emphasize the subjective experience of individuals and the meaning they ascribe to events and phenomena.

Quinney

Richard Quinney is a criminologist known for his contributions to critical criminology and the theory of social reality of crime, emphasizing the role of societal structures in defining crime and deviance.

Marxist Criminologists

Scholars who apply the economic and social theories of Marxism to study crime, its causes, and its effects on society.