Use the Information Below to Answer the Following Question(s)

question 25

Multiple Choice

Use the information below to answer the following question(s) .
Below is a decision tree illustrating the R&D process for a new drug.

Let us assume that if the market is large, the payoff is lognormally distributed with a mean of $ 4,900 million and a standard deviation of $ 1,000 million; if the market is medium, the payoff is lognormally distributed with a mean of $2,500 million and a standard deviation of $500 million; and if the market is small, the payoff is normally distributed with a mean of $1,800 million and standard deviation of $200 million.

-What is the coefficient of variation obtained from the simulation results? [Hint: Choose the approximate value.]

• A)1.587
• B)1.126
• C)2.015
• D)1.890

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Definitions:

Executive Control Processes

Cognitive functions that manage and regulate the coordination of thoughts and behaviors, including planning and decision making.

Working Memory Capacity

The maximum amount of information that can be held and manipulated within the working memory for a short period.

Correlation Coefficients

Statistical measures that describe the direction and strength of the relationship between two variables.

Intelligence Test Scores

Numeric evaluations derived from assessments designed to measure an individual's cognitive abilities compared to a normative dataset.