A New Drug Has Been Developed That Is Found to Relieve

question 90

Multiple Choice

A new drug has been developed that is found to relieve nasal congestion in 90 percent of those with the condition. The new drug is administered to 300 patients with the condition. What is the probability that more than 265 will be relieved of nasal congestion?

• A) 0.0916
• B) 0.1922
• C) 0.8078
• D) 0.3078

Calculate the net present value (NPV) of investment opportunities and understand its importance in investment decision-making.

Understand the concept and calculation of the internal rate of return (IRR) for investment decisions.

Interpret and apply the concept of the profitability index in investment appraisal.

Analyze the impact of no salvage value and the effect of depreciation on investment decisions.

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Definitions:

Drive-Reduction Theory

A theory that postulates that the motivation for behavior arises from biological needs that drive an organism to seek homeostasis or a state of balance.

Blood Vessels Constrict

The narrowing of blood vessels, which can increase blood pressure and reduce blood flow to certain parts of the body.

Physiological Need

Basic, essential requirements necessary for survival, such as food, water, and shelter, often described in the context of Maslow's hierarchy of needs.

Drive-Reduction Theory

A theory of motivation that posits that human beings are motivated to reduce internal tensions caused by unmet biological needs, such as hunger or thirst.