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

question 99

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 return-to-risk ratio (RTRR)criterion is to study 8 hours per week on average for the exam.

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Definitions:

Volley Principle

Theory of pitch that states that frequencies from about 400 Hz to 4,000 Hz cause the hair cells (auditory neurons) to fire in a volley pattern, or take turns in firing.

Frequency Theory

Theory of pitch that states that pitch is related to the speed of vibrations in the basilar membrane.

Hammer (Malleus)

A bone in the middle ear that transmits sound vibrations from the eardrum to the other ossicles.

Stirrup (Stapes)

A small bone in the middle ear that is involved in transmitting sound vibrations to the inner ear.