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In one country, there exists a food and drug administration that has veto power over the choice of drug names. Last year, it used this power regularly, rejecting K 32% of the names proposed by companies for reasons such as sounding too much like another product. Suppose that a company spends $750,000 developing each proposed name, but there's a 50-50 chance of a name being rejected. Complete parts (a) and (b) below. (a) If the review of names occurs independently, what is the probability that the company will spend more than $2,250,000 developing a name? The probability is (Round to two decimal places as needed.) (b) What is the expected value of developing a name? [Hint: For 0≤p≤ 1, p(1+2(1-p) + 3(1-p)² + ...) = 1/p.] The expected value is $ (Round to the nearest dollar as needed.)

In one country, there exists a food and drug administration that has veto power over the choice of drug names. Last year, it used this power regularly, rejecting K 32% of the names proposed by companies for reasons such as sounding too much like another product. Suppose that a company spends $750,000 developing each proposed name, but there's a 50-50 chance of a name being rejected. Complete parts (a) and (b) below. (a) If the review of names occurs independently, what is the probability that the company will spend more than $2,250,000 developing a name? The probability is (Round to two decimal places as needed.) (b) What is the expected value of developing a name? [Hint: For 0≤p≤ 1, p(1+2(1-p) + 3(1-p)² + ...) = 1/p.] The expected value is $ (Round to the nearest dollar as needed.)

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 10CYU
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K In one country, there exists a food and drug administration that has veto power over the choice of drug names. Last year, it used this power regularly, rejecting 32% of the names proposed by companies for reasons such as sounding too much like another product. Suppose that a company spends $750,000 developing each proposed name, but there's a 50-50 chance of a name being rejected. Complete parts (a) and (b) below. (a) If the review of names occurs independently, what is the probability that the company will spend more than $2,250,000 developing a name? The probability is (Round to two decimal places as needed.) (b) What is the expected value of developing a name? [Hint: For 0 ≤p ≤ 1, p(1+2(1-p) + 3(1-p)2 + ...) = 1/p.] The expected value is $ (Round to the nearest dollar as needed.).
Transcribed Image Text:K In one country, there exists a food and drug administration that has veto power over the choice of drug names. Last year, it used this power regularly, rejecting 32% of the names proposed by companies for reasons such as sounding too much like another product. Suppose that a company spends $750,000 developing each proposed name, but there's a 50-50 chance of a name being rejected. Complete parts (a) and (b) below. (a) If the review of names occurs independently, what is the probability that the company will spend more than $2,250,000 developing a name? The probability is (Round to two decimal places as needed.) (b) What is the expected value of developing a name? [Hint: For 0 ≤p ≤ 1, p(1+2(1-p) + 3(1-p)2 + ...) = 1/p.] The expected value is $ (Round to the nearest dollar as needed.).
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