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

question 35

True/False

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, the optimal strategy using the expected monetary value criterion is to study 8 hours per week on average for the exam.

---

Definitions:

Synthesis Reaction

A process where multiple substances merge to create a compound that is more complex.

Decomposition Reaction

A chemical process where a lone compound decomposes into multiple, less complex materials.

Activation Energy

Activation energy is the minimum quantity of energy that a chemical species must possess in order to undergo a specified reaction.

Kinetic Energy

The energy that an object possesses due to its motion.