TABLE 17-6
a Student Wanted to Find Out the Optimal

question 110

Short Answer

TABLE 17-6
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 average amount of time he needed to put in every week studying 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.
$$\begin{array} { | l | c | c | c | } \hline & \text { 16 hours } & 8 \text { hours } & \text { 4 hours } \\\hline \text { Easy Exam } & 40 & 60 & 80 \\\hline \text { Difficult Exam } & 100 & 50 & 0 \\\hline\end{array}$$
-Referring to Table 17-6, what is the opportunity loss of spending 4 hours per week on average studying for the exam when the exam turns out to be easy?

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Definitions:

Interdependence

A mutual dependence between things where each is reliant on the others to function or succeed.

Self-reliance

The reliance on one's own powers and resources rather than those of others.

Making Attributions

The cognitive process of assigning causes or reasons to behaviors and outcomes, often focusing on either internal dispositions or external situations.

Husbands

Male partners in a marriage, playing roles that vary widely across different cultures and individuals.