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

question 27

True/False

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

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Definitions:

Population Average

The mean or average of a set of data collected from the entire population under study.

Salary Information

Data or details regarding the amounts of money individuals are paid for their work or services.

Test Statistic

A statistic calculated from sample data used to decide whether to reject the null hypothesis in a hypothesis test.

Population Average

Refers to the mean value of a characteristic within a given population.