Testing New Drugs .Clinical testing of chemical compounds for approval as drugs goes through 3 successive stages: Phase 1: testing on about 50 healthy individuals to investigate possible side effects. 70% of compounds pass Phase 1. Cost $7.3m per compound Phase 2: testing on about 200 patients to investigate effectiveness in curing illness. 43% of compounds pass Phase 2. Cost $18.9m per compound Phase 3: testing on about 3000 patients to investigate effectiveness in curing illness. 67% of compounds pass Phase 3. Cost $43.3m per compound . Starting with 5 chemical compounds, what is the expected cost of clinical testing to produce one drug, including the cost of testing unsuccessful compounds. . Hint: The total cost T= C1+C2+C3 - sum of costs at each stage Hint: Calculate the expected number of compounds at each stage