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?

---

Definitions:

Pearson r

A statistical coefficient expressing the linear correlation between two variables, ranging from -1 to +1.

Feelings of Safety at Night

An individual's perceived sense of security and well-being in public or private settings during nighttime.

Regression Equation

A mathematical formula used to predict a dependent variable based on one or more independent variables, typically in the form of Y = a + bX.

Gender

A range of characteristics pertaining to, and differentiating between, masculinity and femininity.