Draw a graph that compares the success rate

Assignment Help Basic Statistics
Reference no: EM13854919

Question 1

Pharmaceutical Drug Development. Canada has several small biotechnology companies which are research intensive and develop chemical compounds that may prove to be useful drugs, but they typically do not have the funding or global reach to test the compounds for government approval or to market drugs world-­-wide. Instead they sell the patents on the chemical compounds to large pharmaceutical companies to test and market. A pharmaceutical company has been buying patents from 2 biotechnology companies and the number of patents that lead to (un)successful drugs during the past 5 years for 3 categories of drug is as follows:-­-

Number of Patents

BioTech Co. A BioTech Co. B Succesful Unsuccessful Succesful Unsuccessful

Genetic diseases




















(a) Make a contingency table for number of successful patents with 3 rows for the 3 categories of drug and 2 columns for the 2 companies and give the row and column totals.

(b) Make a table similar to (a), this time giving the proportion of successful patents in each cell of the table. Do NOT include row or column totals.

(c) Draw a graph that compares the success rate (proportion of patents that lead to successful drugs) of patents bought from company

A with those bought from company B for each type of drug.

(d) Company A says that they have provided 135 patents of which 43 were successful, a success rate of 43/135 = 31.8%. The corresponding figure for company B is 29.4%. Company A claims therefore to be more successful than company B. If you were company

B, how would you respond to this claim?

(e) If the pharmaceutical company wants to buy a patent, which biotechnology company should they buy it from

(i) for genetic diseases

(ii) for chemotherapy

(iii) for anti-­-inflammatory. State the reason for your answer.

Question 2

Oil Extraction. In Canada, Provincial Governments allocate to oil companies geographical regions in which to explore for oil. If they discover oil, they do not necessarily extract the oil since the cost of extraction may be higher than the market price for oil. However the market price for oil continuously changes so that the oil may be commercially exploited at some date in the future. Oil companies own the rights to extract oil that they have discovered, but the value of that oil to the company depends on when in the future the oil price will be sufficiently high to make it worth extracting. An oil company estimates that, for a certain oil-­-field, the probability that the oil price will be high enough to extract the oil is given in the following table. Assume that these events are independent of each other.

Number of years in the future

Probability of oil price being sufficiently high to extract oil.











Calculate the probability that the oil company will start to extract oil (a) in year 1 (b) in year 2 (c) in year 3 (d) in year 4 (e) in year 5.

(f) Comment on whether (i) the probabilities in your answers (ii) the probabilities in the question total to more or less than 1.




Reference no: EM13854919


Write a Review


Basic Statistics Questions & Answers

  Construct now the 95 confidence interval for the difference

a calculate a confidence intervals for p1 at 1 significance level. mu 395625 sd78550. are the confidence intervals

  Hamburger probability

Because of a recent incident in which a number of people became ill after eating undercooked hamburger meat, intensive interest has centered around the cooking time for hamburger patties.

  Computing critical value for z test

What are the critical values for z on a one-tailed test if alpha = .01? .001? What would the critical values be at both levels of significance if it was a two-tailed test?

  Confidence interval for mean time taken-statistics students

Construct a 99% confidence interval for the mean time taken by all statistics students to solve the computer assignment.

  Using the table of continuous data below how would i

using the table of continuous data below how would i compute the 25th 50th and 75th percentiles?2512897456563474

  Write down the null and alternative hypotheses to examine

car size m3bodyyearyear9.941small cars2003less than 200510.251small cars1996less than 200510.699small cars2012greater

  Sketch tree view with first level-conditional probability

Let random variable X represent number of heads on first toss and y total number of heads from three tosses. Sketch tree view with X as first level and Y/X as second level and determine conditional probability p(Y=2/X=1).

  List sample points for probabilities to the simple events

Suppose that four families are surveyed and that each one reports whether its income exceeded the reported medium for that year. List the sample points.

  Extreme value on the confidence interval

Using the results, describe the effect of an outlier or extreme value on the confidence interval.

  The probability of a customer assistant consultant

What is the probability that she will have at least 3 minutes to obtain her cup of tea?

  Fit both linear and an exponential trend to the data

Fit both linear and an exponential trend to the data. (d) Which model is preferred? Why? (e) Make a forecast for 2003, using a trend model of your choice (or judgments forecast).

  What are the steps in the construction

what are the steps in the construction

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd