The maximum patent life for a new drug is 17 years. Subt that a company has to r

Question

The maximum patent life for a new drug is 17 years. Subt that a company has to recover research and development costs and make a profit. Suppose the distribution of the lengths of patent life for new drugs is as shown here. rtesting and approval of the drug provides the actual patent life of the drug-that is, the length of time p(x) 0.03 0.05 0.07 0.10 0.14 0.23 0.15 0.12 0.07 0.03 0.01 (a) Find the expected number of years of patent life for a new drug. (Enter your answer to two decimal places.) 7.87 (h) Find the standard deviation of x. (Round your answer to four decimal places.) 1664 yr (c) Find th probability that x falls into the in terval ± 2. (Enter your answer to two decimal places.)

Explanation / Answer

The interval +/ 2 corresponds to the area between z values 2 and -2.

P(Z < 2) = 0.9772

P(Z < -2) = 0.0228

=> (-2 < Z < 2) = 0.9772 - 0.0228 = 0.9544 = 0.95.

(Note: This is also given by the 68-95-99.7 rule.)

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