If the patent lives at least eleven years for new work. drugs, is this unusual or usual? Show your

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The maximum patent life for a new drug is 17 years. Subtracting the length of time required
by the FDA for testing and approval of the drug provides the actual patent life for the drug that
is, the length of time that the company has to recover research and development costs and to
make a profit. The distribution of the lengths of actual patent lives for new drugs is given below:
8
0.20
| 11
Year, y 4
|føy)
5
6.
7
9
10
12
0.05
0.07
0.14
0.17
|0.08
| 0.22
?
0.01
Transcribed Image Text:The maximum patent life for a new drug is 17 years. Subtracting the length of time required by the FDA for testing and approval of the drug provides the actual patent life for the drug that is, the length of time that the company has to recover research and development costs and to make a profit. The distribution of the lengths of actual patent lives for new drugs is given below: 8 0.20 | 11 Year, y 4 |føy) 5 6. 7 9 10 12 0.05 0.07 0.14 0.17 |0.08 | 0.22 ? 0.01
If the patent lives at least eleven years for new drugs, is this unusual or usual? Show your
work.
Transcribed Image Text:If the patent lives at least eleven years for new drugs, is this unusual or usual? Show your work.
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