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

question 2

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 would be the expected profit if the student had perfect information on whether the exam will be easy or difficult?

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Definitions:

Energy Expended

The amount of energy used or consumed in the completion of an action or process.

Daily Diet

The totality of food and drink consumed by an individual on a day-to-day basis.

Gluten

A mixture of proteins, mainly gliadin and glutenin, found in wheat and related grains, which gives dough its elasticity.

Celiac Disease

An autoimmune disorder where the ingestion of gluten leads to damage in the small intestine, impairing nutrient absorption.