TABLE 17-6
a Student Wanted to Find Out

question 31

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 expected profit under certainty?

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Definitions:

Offshore Purchases

Buying goods or services from suppliers located in another country, typically for cost savings.

Lead Time

The duration between the initiation and the completion of a production process or the delivery of a service.

Transportation and Communications

The systems and methods used to move people or goods from one place to another, and the exchange of information, respectively, critical to economic and social interactions.

Supplier Evaluation

The process of assessing a supplier's performance and capabilities to ensure they meet the purchasing company's requirements and standards.