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

question 122

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 return-to-risk ratio criterion is to study 8 hours per week on average for the exam.

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Definitions:

Coefficient of Determination

A measure used in statistical modeling that indicates how well data points fit a line or curve. It is represented as a value between 0 and 1.

Dependent Variable

A variable in statistical modeling whose value is influenced by other variables.

Independent Variable

The variable in an experiment that is manipulated or changed to explore its effects on the dependent variable.

Significance Level

The threshold below which a test statistic must fall for the null hypothesis to be rejected, indicating statistical significance.