What is the expected value of the compensation per


Heemy Pharmaceuticals marketed a drug that proved to be an effective treatment but unfortunately resulted in side effects for some patients. On the basis of initial clinical research the probability that a patient who is treated with the drug suffers no side effect is 0.85, the probability of a minor side effect is 0.11, and the probability of a major side effect is 0.04. Under an agreement with the appropriate authorities the company has agreed to pay £2500 in compensation to patients who suffer a minor side effect and £20,000 in compensation to patients who suffer a major side effect. What is the expected value of the compensation per patient?

Request for Solution File

Ask an Expert for Answer!!
Chemical Engineering: What is the expected value of the compensation per
Reference No:- TGS02201172

Expected delivery within 24 Hours