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Tazer Corp.

Pharmaceutical Decision Making


Project
1 (Up) 2 (Stable) 3 (Choice) 4
R&D Investment ($ million) 400
300
600
Success Rate 0.5
0.35
0.35
Revenue if Successful ($ million) 1400
1200
2200
Expected Revenue ($ million) 700
420
770
Expected Profit ($ million) 300
120
170

(Hope)
500
0.2
3000
600
100

1 (Up) 2 (Stable) 3 (Choice) 4 (Hope)


Decision Variables
1
0
1
0
Total Investment ($ million) 1200
<=
Max Investment ($ million) 1200
Total Expected Profit ($ million)

540

aking
5 (Release)
200
0.45
600
270
70

5 (Release)
1

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