A Pharmaceutical Company Has Determined That If a New Cholesterol-Reducing

question 61

Multiple Choice

A pharmaceutical company has determined that if a new cholesterol-reducing drug is manufactured (introduced to the market) ,the following probability distribution will describe this drug's contribution to the company's profits during the next six months. $\begin{array} { c c } \text { Profit Contribution } & \text { Probability of Profit Contribution } \\\hline - \$ 30,000 & .20 \\\$ 50,000 & .50 \\\$ 200,000 & .30\end{array}$
The company management has decided to market this product if the expected contribution to profit for the next six months is more than $90,000.Based on the information given above,should the company begin manufacturing the new drug? Explain your answer.

• A)Yes,begin manufacturing.
• B)No,don't begin manufacturing.
• \(\mu _ { x }\)

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Definitions:

Measuring Instrument

A tool or device used to assess, quantify, or evaluate specific variables or phenomena, often used in research and experimental studies.

Valid

Logically sound, well-grounded, or acceptable according to the rules of a specific context or criteria.

Meta-Analysis

A statistical technique that combines the results of multiple scientific studies to arrive at a conclusion.

Scientific Outcomes

The results or findings that emerge from scientific research, experiments, or studies.