Instruction 17-1
a Student Wanted to Find Out the Optimal

question 72

Short Answer

Instruction 17-1
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 17-1,what is the opportunity loss of spending 8 hours per week on average studying for the exam when the exam turns out to be difficult?

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Definitions:

Emphysema

A chronic respiratory disease characterized by damage to the air sacs in the lungs, leading to breathlessness.

Nicotine Patch

A transdermal patch that releases nicotine into the body through the skin, used as an aid to help quit smoking by reducing withdrawal symptoms.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Stimulus For Breathing

Factors that trigger the respiratory center in the brain, causing inhalation and exhalation, such as increased carbon dioxide levels in the blood.