Use the Information for the Question(s)below

question 13

Multiple Choice

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?

• A)$500 million
• B)$100 million
• C)$1 billion
• D)$0

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Definitions:

Intellectual Disability

A term for significant limitations in intellectual functioning and adaptive behavior, affecting everyday social and practical skills.

IQ Score

A numerical assessment derived from standardized tests designed to measure a person's intellectual abilities in comparison to the general population.

Moderate Intellectual Disability

A level of intellectual disability where individuals possess an IQ between 35-49, typically exhibiting limitations in conceptual, social, and practical adaptive skills.

Borderline Intellectual Development

A condition characterized by cognitive abilities that are significantly below average but not low enough to be classified as intellectual disability.