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

question 79

True/False

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, the optimal strategy using the expected monetary value
criterion is to study 16 hours per week on average for the exam.

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Definitions:

Empathy

The ability to understand and share the feelings of another, putting oneself in another's shoes.

Compassion

A deep awareness of and sympathy for another's suffering, combined with a desire to alleviate that suffering.

Kohlberg

A psychologist known for his theory on the stages of moral development, which proposes that individuals progress through a series of ethical reasoning levels as they age.

Connectiveness

The state or condition of being connected or interrelated, often referring to the ability to establish and maintain relationships with others.