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

question 186

Short Answer

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.

-Referring to Table 19-6, what is the return-to-risk ratio of spending 8 hours per week on average studying for the exam?

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Definitions:

Low-Grade Ores

Minerals containing a smaller percentage of valuable metals or minerals, thus requiring more resources to extract them profitably.

Depletion Time

The estimated time it will take to use up a resource at its current rate of consumption.

Mineral Reserves

Quantities of minerals that can be profitably extracted and processed with current technology.

Metallic Mineral

Minerals from which metal can be extracted, typically characterized by a shiny, metallic luster and conductivity of heat and electricity.