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Question There is a new drug on the market for indigestion. It has normally one

ID: 1184292 • Letter: Q

Question

Question There is a new drug on the market for indigestion. It has normally one of two reactions-- it either helps or makes you worse. The following table gives you the benefits and costs as well as the probability of either occurrence. Gain from Help Probability of Help Loss from Harm Probability of of Harm $50 .40 - $40 .60 From the data above this drug Answer Should be used (net gain) Should not be used (net loss) Should be indifferent (no net change) Cannot be determined without more information

Explanation / Answer

Should not be used (net loss)

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