SCENARIO 20-6 a Student Wanted to Find Out the Optimal Strategy to Strategy

question 44

Short Answer

SCENARIO 20-6
A student wanted to find out the optimal strategy to study for a Business Statistics exam with scores out of 100 possible points.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.

-Referring to Scenario 20-6,what is the opportunity loss of spending 4 hours per week on average studying for the exam when the exam turns out to be easy?

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Definitions:

Surgery

Medical procedures involving the cutting of a body, either for the diagnosis of an illness, treatment, or repair of injury/damage.

Olfaction

The sense of smell, a chemical sense involved in detecting and identifying airborne substances.

Sniffing

The act of inhaling substances, often used in the context of substance abuse, but also a basic action for detecting smells.

Dog

A domesticated carnivorous mammal known for its loyalty and companionship, scientifically classified as Canis lupus familiaris.