A student can either get a good score or a bad score on an exam. The probability of getting a good score on the exam is 0.8 if you study (put in effort e=1e=1) and 0.30 if you don’t study (put in effort e=0e=0). The cost of studying = 20.

A student can either get a good score or a bad score on an exam. The probability of getting a good score on the exam is 0.8 if you study (put in effort $e=1$) and 0.30 if you don’t study (put in effort $e=0$). The cost of studying = 20.

A school wants to offer a scholarship of value M that will encourage students to study. Students will receive the scholarship if they get a high score on the exam. Students will get nothing if they receive a low score on the exam.

Which of the following values of M will ensure that students study? There may be more than one correct answer.