Hi-Plains Design Is Bidding on a Project That Will Earn

question 37

Multiple Choice

Hi-Plains Design is bidding on a project that will earn the company at least $650 million.The competitive bidding process will involve presenting the company's proposal to three successive review panels at the client company, all of which must approve the proposal for Hi-Plains bid to be successful.If the proposal is approved by the first panel, Hi-Plains will present the proposal to the next panel.If it is approved there, Hi-Plains will present the proposal to the third panel.Hi-Plains estimates that its proposal has a 40% chance of approval at each of the stages.Define "number of Hi-Plains presentations" as your random variable for this "experiment." The possible values for the random variable (in ascending order) are:

• A)0,1,2,3
• B)1,2,3
• C)0,1,2,3,4
• D)1,2,3,4
• E)0,1

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Definitions:

Patents

Legal rights granted to inventors or their assignees to exclusively exploit an invention for a certain period of time.

Acquiree

The business or businesses of which the acquirer obtains control in a business combination.

Acquisition Consideration

The total value transferred by one company to acquire another, including cash, shares, and other assets.

Tangible Asset

An asset that has physical form and value, such as equipment or real estate.