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

question 49

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 profit under certainty?

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Definitions:

Consumer Learning

The process through which consumers acquire knowledge and experience about consumption, which they apply to future purchase decisions.

Marketing Strategies

A business's overall game plan for reaching prospective consumers and turning them into customers of their products or services.

Reinforcement

In psychology, a process by which a stimulus increases the probability of a behavior by either introducing a positive outcome or removing a negative one.

Opinion Leader

An individual who has significant influence on the attitudes, opinions, or behaviors of others, typically within a specific community or group.