Instruction 17-2
a Student Wanted to Find Out the Optimal

question 67

Short Answer

Instruction 17-2
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 put in every week studying 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 Instruction 17-2,what is the expected value of perfect information?

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Definitions:

Kilometres Per Litre

A measure of fuel efficiency in vehicles, indicating how many kilometres a vehicle can travel on one litre of fuel.

Fuel Price

The cost at which fuel is sold, influenced by various factors including global supply, demand, taxes, and geopolitical events.

Sustainability

Meeting the needs of the present without compromising the ability of future generations to meet their needs.

Electric Vehicles

Vehicles that are propelled by electric motors and batteries, rather than internal combustion engines, to minimize environmental impact.