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

question 93

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 would be the expected profit if the student had perfect information
on whether the exam will be easy or difficult?

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Definitions:

Amygdala

A component of the brain's limbic system involved in emotions, decision-making, and memory processing.

Stress Hormones

Hormones, such as cortisol and adrenaline, that are released into the body in response to stress, affecting various bodily functions.

Propranolol

A medication commonly used to treat high blood pressure, anxiety, and certain heart conditions by blocking the effects of adrenaline on the body's beta receptors.

Retrieval Cues

Information in the environment or in memory that triggers the recall of information.