Instruction 17-6
a Student Wanted to Find Out the Optimal

question 39

True/False

Instruction 17-6
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 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 17-6,the optimal strategy using the expected monetary value criterion is to study 8 hours per week on average for the exam.

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Definitions:

Sales

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Segmental Financial Reporting

The practice of reporting financial data for different branches, divisions, or segments of a company to provide insights into individual performance.

Internal And External Revenues

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Securities Regulator

A governmental or non-governmental organisation charged with regulating and overseeing the securities industry, including markets, brokers, and public companies to protect investors.