A drug company is about to start clinical trials of two new drugs that it has developed to help people to quit smoking.
Based on experience and current laboratory results, the drug company believes that there is a 70% chance that both drugs will be accepted and a 20% chance only one will be accepted.
If both are accepted the drug company will make \$10 million. If one is accepted the drug company will make a \$4 million profit, while if both are rejected they will lose \$2 million. What is the drug company's expected profit?
None of the above?