One Local Hospital Has Just Enough Space and Funds Currently

question 57

Multiple Choice

One local hospital has just enough space and funds currently available to start either a cancer or heart research lab. If administration decides on the cancer lab, there is a 20 percent chance of getting $100,000 in outside funding from the American Cancer Society next year, and an 80 percent chance of getting nothing. If the cancer research lab is funded the first year, no additional outside funding will be available the second year. However, if it is not funded the first year, then management estimates the chances are 50 percent it will get $100,000 the following year, and 50 percent that it will get nothing again. If, however, the hospital's management decides to go with the heart lab, then there is a 50 percent chance of getting $50,000 in outside funding from the American Heart Association the first year and a 50 percent chance of getting nothing. If the heart lab is funded the first year, management estimates a 40 percent chance of getting another $50,000 and a 60 percent chance of getting nothing additional the second year. If it is not funded the first year, then management estimates a 60 percent chance for getting $50,000 and a 40 percent chance for getting nothing in the following year. For both the cancer and heart research labs, no further possible funding is anticipated beyond the first two years.
What is the probability that the heart lab will be funded in both the first and second years?

• A)0.4
• B)0.3
• C)0.2
• D)0.1
• E)0

Identify the consequences of abnormal red blood cell morphology.

Describe the formation and significance of bilirubin.

Understand the concept of diversifiable and nondiversifiable risk.

Identify and calculate the beta of an asset.

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Definitions:

Insulin

Insulin is a hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into cells, essential for energy production.

Pancreatic Beta Cells

Pancreatic beta cells are cells located in the islets of Langerhans in the pancreas that produce and release insulin, a hormone that regulates blood sugar levels.

Thyroid Hormone

A hormone produced by the thyroid gland that regulates metabolism, energy generation, and growth and development in the body.

Anterior Pituitary

The anterior, glandular lobe of the pituitary gland; functions as a classical endocrine gland; secretes growth hormone, prolactin, melanocyte-stimulating hormone, and several tropic hormones. Compare with posterior pituitary.