Use the below decision tree illustrating the R&D process for
a new drug to answer questions 1 and 2:
Provided Dollar amounts in the decision tree are in
millions.
1) Which of the following is a decision node?
A) whether or not clinical trials are successful B) whether or
not to seek FDA approval
C) whether the market is large, medium, or small D) whether or
not FDA approved
2) What is the probability that the drug reaches to a large
market?
A) 0.054 B) 0.700 C) 0.108 D) 0.018





