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Managers in the field of biotechnology know that new drugs have a 10 percent chance of passing advanced clinical trials and always assign probabilities to the results of clinical trials. This is an example of ________.

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Answer: Risk

Explanation: The managers knows the percentage of the new drugs to pass the clinical trial to be ten percent (10%), but they are will to take the risk because there is still a small probability of success that the new drugs might pass the clinical trail test. Not taking the risk means the drugs won't have chance.

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