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Subjects tested

prob. Of pass
criteria of passed subjects

R&D cost (million)

Advertisement cost (millions)

Total market size

expected market size, if passed

prob of competitor entering


decrease in market share, if competitor
enters
profit per customer i.e. overall revenue

subject # tested

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100
Drug Development

100
27%
>=20
uniform distribution
$ 3.10 $ 5.00
triangular distribution
$ 12.00 $ 16.00 $ 18.00
million people
normally distributed
mean sd
320% 100.0%
0.25%
uniformly distributed
120% -500%

Simulation
if
Test result Total passed
R&D Cost
not pass 32 #NAME?
pass
not pass
not pass
pass
not pass
not pass
not pass
pass
not pass
not pass
pass
not pass
pass
pass
pass
not pass
not pass
not pass
pass
pass
pass
not pass
not pass
not pass
not pass
not pass
pass
not pass
pass
not pass
not pass
not pass
pass
pass
pass
pass
not pass
not pass
pass
not pass
not pass
pass
not pass
pass
not pass
not pass
pass
pass
not pass
pass
not pass
pass
pass
not pass
not pass
not pass
not pass
not pass
not pass
pass
not pass
not pass
not pass
not pass
pass
not pass
pass
not pass
not pass
not pass
pass
not pass
not pass
not pass
not pass
not pass
not pass
pass
not pass
not pass
pass
not pass
not pass
not pass
pass
not pass
not pass
not pass
not pass
not pass
not pass
not pass
not pass
not pass
not pass
pass
not pass
not pass
not pass
@RISK

0.27
0.73

Markewt size
40

2 6

Simulation
if passed, then….
Advertisement cost Market captured (millions) Competitor enters? Decreased i.e. new market
#NAME? #NAME? NA

a) Mean Profit #NAME?


b) Prob. That profit is <=$0 100.00%
c) Max profit $ 4,049.00
profit per 12

revenue? Profit
#NAME? #NAME?

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