Question: 21 In planning farm operations for the current year, a farmer can choose from two crops, A and B. The profits (in dollars) of the
21
In planning farm operations for the current year, a farmer can choose from two crops, A and B. The profits (in dollars) of the crops depend on the amount of rainfall according to the following table.
Rainfall CROP A CROP B
Heavy $7,500 $3,000
Moderate $3,500 $3,000
Light $1,500 $5,000
The farmer estimates the chance of heavy rainfall to be 20%, moderate rainfall 35%, and light rainfall as 45%. What crop should the farmer plant? why or why not?
Show all your work. Explain your answer using the relevant equations. Your explanation determines your grade
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
