As Part of Pharmaceutical Testing for Drowsiness as a Side

question 16

Essay

As part of pharmaceutical testing for drowsiness as a side effect of a drug,200 patients are randomly assigned to one of two groups of 100 each.One group is given the actual drug and the other a placebo.The number of people who felt drowsy in the next hour is recorded as a.What is the probability that a randomly picked patient in the study feels drowsy in the next hour?
b.What is the probability that a randomly picked patient in the study takes the placebo or feels drowsy in the next hour?
c.Given that the patient was given the drug,what is the probability that he or she feels drowsy in the next hour?
d.Is whether a patient feels drowsy independent of taking the drug? Explain using probabilities.

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Definitions:

Internal Rate of Return

The discount rate at which the net present value of all cash flows from a particular project equals zero.

Increased Efficiency

Improvements in operational performance that allow for the same or higher levels of output with less input, often through better processes or technology.

Annual Cash Savings

The amount of money saved in a year through various cost-cutting measures or efficiency improvements.

Salvage Value

An asset's expected selling price once it has concluded its functional life.