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question 13

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Use the information for the question(s) below.
Big Cure and Little Cure are both pharmaceutical companies.Big Cure presently has a potential "blockbuster" drug before the Food and Drug Administration (FDA) waiting for approval.If approved,Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure.Little Cure has 10 separate less important drugs before the FDA waiting for approval.If approved,each of Little Cure's drugs would produce $100 million in net income for Little Cure.The probability of the FDA approving a drug is 50%.
-What is the expected payoff for Little Cure's ten drugs?

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Definitions:

Somatic Nervous System

Part of the peripheral nervous system associated with the voluntary control of body movements through the action of skeletal muscles.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for rapid responses to stressors, activating the fight-or-flight response.

Somatic

Relating to or affecting the body, especially as distinct from the mind.

Parasympathetic

The part of the autonomic nervous system that conserves energy by slowing the heart rate and increasing digestive activities.

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