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.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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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
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.).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb854e95b-6f91-4ea9-9e99-ab6ba7352139%2F630b85f5-6a30-4f54-a244-45a8844b3369%2F2qtw98_processed.jpeg&w=3840&q=75)
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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