Hank is an intelligent student and usually makes good grades, provided that he can review the course material the night before the test. For tomorrow’s test, Hank is faced with a small problem: His fraternity brothers are having an all-night party in which he would like to participate. Hank has three options:

Tomorrow’s exam can be easy (s₁), moderate (s₂), or tough (s₃), depending on the professor’s unpredictable mood. Hank anticipates the following scores:

(a) Recommend a course of action for Hank (based on each of the four criteria of decisions under uncertainty).

(b) Suppose that Hank is more interested in the letter grade he will get. The dividing scores for the passing letter grades A to D are 90, 80, 70, and 60, respectively. Would this attitude toward grades call for a change in Hank’s course of action?

Transcribed Image Text:

- Party all night a 1 = a₂ = Divide the night equally between studying and partying a3 = Study all night