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

question 68

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 maximax criterion is to
study 8 hours per week on average for the exam.

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Definitions:

Graduate School

An advanced program of study focused on a particular academic discipline or profession, typically after earning a bachelor's degree.

Engineering

The application of scientific, mathematical, and practical knowledge to innovate, design, build, maintain, and improve structures, machines, devices, systems, materials, and processes.

Frequency Distribution

A summary of how often different values occur within a data set, typically organized into a table or represented graphically.

Percent Frequency

The frequency of a specific event or category expressed as a percentage of the total number of events or categories.