SCENARIO 19-6
a Student Wanted to Find Out the Optimal

question 1

Short Answer

SCENARIO 19-6
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 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. $$\begin{array} { | l | l | l | l | } \hline & 16 \text { hours } & 8 \text { hours } & 4 \text { hours } \\\hline \text { Easy Exam } & 40 & 60 & 80 \\\hline \text { Difficult Exam } & 100 & 50 & 0 \\\hline\end{array}$$
-Referring to Scenario 19-6, what is the expected monetary value of spending 8 hours per week on
average studying for the exam?

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Definitions:

Bipolar Disorder

An emotional disorder defined by radical shifts in mood, from elevated states of mania or hypomania to depressive episodes.

Panic Disorder

A mental health condition marked by sudden, recurrent episodes of severe panic along with physiological reactions.

Social Anxiety Disorder

A mental health disorder characterized by intense fear and avoidance of social situations due to feelings of embarrassment, self-consciousness, and concern about being judged or viewed negatively by others.

Obsessive-Compulsive-Related Disorders

Psychiatric disorders characterized by the presence of obsessive thoughts and compulsive behaviors.