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

question 64

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 opportunity loss of spending 8 hours per week on average
studying for the exam when the exam turns out to be difficult?

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Definitions:

Ferrites

A class of chemical compounds that are ferromagnetic metal oxides, often used in electronic devices for magnetic storage or as magnetic cores.

Unprocessed Magnetite

Naturally occurring magnetite iron ore that has not undergone any form of beneficiation or refinement.

Articulate Surface

A surface of a bone that makes a joint with another bone, allowing for varying degrees of movement.

Convex Surface

A curved surface that bulges outward, resembling the exterior of a sphere or circle.