13 16 17 Total Profit 14 A drug company is planning to invest in a new drug. The cost of research has a uniform 15 distribution on $300,000 to $500,000. There is a 40% chance that the drug will not be effective, in which case there will be no sales. If the drug is effective, then the total market for the drug is 400,000 people. The company expects their share of the market to have a triangular distribution with minimum 5%, maximum 30%, and most likely 20% of the people. For each person who uses the new drug, the company expects to make 21 $100 in sales during the first year. The drug company would like to know the distribution 22 of profit they can expect from undertaking this investment 18 19 20 23 13 16 17 Total Profit 14 A drug company is planning to invest in a new drug. The cost of research has a uniform 15 distribution on $300,000 to $500,000. There is a 40% chance that the drug will not be effective, in which case there will be no sales. If the drug is effective, then the total market for the drug is 400,000 people. The company expects their share of the market to have a triangular distribution with minimum 5%, maximum 30%, and most likely 20% of the people. For each person who uses the new drug, the company expects to make 21 $100 in sales during the first year. The drug company would like to know the distribution 22 of profit they can expect from undertaking this investment 18 19 20 23