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Question
A vaccine development effort has three phases of trials. The first phase has a probability of 0.5 of being successful, the second phase has an independent probability 0.3 of being successful, and the third phase has an independent probability of 0.2 of being successful. If the vaccine passes all three phases, it is approved and launched into the market. The vaccine maker has formulated 8 different variations of the vaccine.
1. What is the probability of any given vaccine variant will be successfully launched? Answer as a number between 0 and 1.
2. What is the expected number of the vaccine variants that will be successfully launched?
3. What is the probability that at least one of the vaccine variants will be successfully launched? Answer as a number between 0 and 1.
4. What is the probability that two or more of the vaccine variants will be successfully launched? Answer as a number between 0 and 1.
5. What is the probability that none of the vaccine variants will be successfully launched? Answer as a number between 0 and 1.
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Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.
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