The probability that a pharmaceutical firm will successfully develop a new drug that will return $750 million dollars is 0.14. Of the research is unsuccessful, the company incurs a cost of $100 million dollars. What is the expected return in the long run for continually trying to develop new drugs?

The expected return in the long run for continually trying to develop new drugs is $19 million dollars.

Step-by-step explanation:

We have these following probabilities for the pharmaceutical firm:

A 14% probability that the research to develop a new drug is successful, earning $750 million dollars.

An 86% probability that the research to develop a new drug is unsucessful, losing $100 million dollars.

What is the expected return in the long run for continually trying to develop new drugs?

14% probability of earning $750 million, 86% probability of losing $100 million. So

The expected return in the long run for continually trying to develop new drugs is $19 million dollars.

step-by-step explanation:

the options are kind of confusing. i can tell you what i see going on here when i look at the graph.

the class and exam medians are closely related, and it looks like the low outlier on the exam did pull the median lower. [tex][/tex]