SCENARIO 20-6 a Student Wanted to Find Out the Optimal Strategy to Strategy

question 89

Short Answer

SCENARIO 20-6
A student wanted to find out the optimal strategy to study for a Business Statistics exam with scores out of 100 possible points.He constructed the following payoff table based on the mean amount of time he needed to study every week 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.

-Referring to Scenario 20-6,what is the opportunity loss of spending 16 hours per week on average studying for the exam when the exam turns out to be easy?

---

Definitions:

Standard Deviations

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean (average) of the data set.

Marasmus

A form of severe malnutrition characterized by energy deficiency.

Protein Calorie Malnutrition

A nutritional disorder caused by a lack of dietary protein and calories, leading to body tissue wasting and weakened immunity.

Infectious Diseases

Diseases caused by pathogenic microorganisms, such as bacteria, viruses, parasites or fungi, that can be spread, directly or indirectly, from one person to another.