TABLE 19-6 a Student Wanted to Find Out the Optimal Strategy to Strategy

question 89

True/False

TABLE 19-6
A student wanted to find out the optimal strategy to study for a Business Statistics exam.He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam.From the information that he gathered from students who had taken the course,he concluded that there was a 40% probability that the exam would be easy.
-True or False: Referring to Table 19-6,the optimal strategy using the maximin criterion is to study 16 hours per week on average for the exam.

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Definitions:

Income

The monetary payment received for goods or services, or from investments, typically measured per period like annually or monthly.

Apples

A popular fruit cultivated worldwide, known for its variety in taste, color, and utility in both raw and cooked forms.

Bananas

A kind of extended, consumable fruit that comes from a range of big, herbaceous blooming plants belonging to the Musa genus.

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford to buy at given prices within their income level.