Question: Hello, may you please answer ASAP and I will rate a thumbs up? (25 points) A pharmaceutical company is deciding whether to launch a new

Hello, may you please answer ASAP and I will rate a thumbs up?

Hello, may you please answer ASAP and I will rate

(25 points) A pharmaceutical company is deciding whether to launch a new vaccine of COVID to the market. In order to do this, the company requires to assemble a team of Research and Development (R&D team) to develop the new vaccine at a cost of $10'000,000. The R&D-team may be successful in their task, however this is not a guarantee: it is estimated that the success probability of the R&D team is of 70%. If the R&D is successful, then the profits of the company will depend on the competition level from other developers for this new vaccine in the market: there might be high-level competition, standard-level competition, or low-level competition: Profits Probability High competition: 0.3 Standard competition: 0.6 $-8'000,000 $19'000,000 $80'000,000 Low competition: 0.1 If the R&D team is not successful in developing the new vaccine, then the incomplete work could be sold for $280,000 for data-base purposes to the competitors, but only if they are willing to purchase the data from us. It is estimated that the likelihood of finding a competitor that is willing to purchase our incomplete work is 80%. If no competitor that is willing to purchase our incomplete work is found, then the entire investment is lost. (10 points) Develop a decision tree analysis for the situation mentioned above. b. (10 points) Find the utility value for each node (5 points) Make the final decision based on your findings of part a and b a. C

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