Xavier Aptitude Test 2014 Paper

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SECTION - B DECISION MAKING
Directions for (Qs. 29-32): Read the following case-let and answer the questions that follow :
Krishna Reddy was the head of a pharmaceutical company that was trying to develop a new product. Reddy, along withhis friend Prabhakar Rao, assessed that such products had mixed success. Reddy and Rao realized that if a new product (a drug) was a success, it may result in sales of 100 crores but if it is unsuccessful, the sales may be only 20 crores. They furtherassessed that a new drug was likely to be successful 50% of times. Cost of launching the new drug was likely to be 50 crores.
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Question : 29 of 103
 
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How much profit can the company expect to earn if it launches the new drug (suppose there are no additional costs)?
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