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

question 69

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 opportunity loss criterion is to study 16 hours per week on average for the exam.

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Definitions:

Learning Theory

A set of principles that explains how individuals acquire, retain, and recall knowledge.

Modeling

A method of learning in which individuals ascertain how to act or perform by observing the behavior of others, also known as observational learning or social learning.

Linguistic-Relativity Hypothesis

The theory that the structure of a language influences its speakers' worldview or cognition.

Cognitive Limits

The boundaries or constraints on a person's mental abilities, such as memory capacity, attention span, and the ability to process information.