5. Based in the information in the table, what is the expected soybean yield for this farm in bushels/acre? (10 pts.)

6. Calculate the fair premium for a yield insurance policy which guarantees a yield level of 50 bushels/acre (Y_G = 50). The price guarantee is $10.00 per bushel (P_G = $10.00). An indemnity is paid if actual yield falls below the guaranteed level. Insurance indemnities are calculated by multiplying the yield loss in bushels times the guaranteed price level. Show your work.

Insurance Questions Use the information in the table below to answer questions 5-7. Yield Soybean Yield (bushels/acre) Weather Insurance Indemnity Conditions Probability Yield Loss 5% 31 Severe Drought 10% 42 Very Dry 10% 55 Very Wet 45 5% Flooding 50% 65 Good Weather 20% 70 Great Weather 5. Based in the information in the table, what is the expected soybean yield for this farm in bushels/acre? (10 pts.) 6. Calculate the fair premium for a yield insurance policy which guarantees a yield level of 50 bushels/acre (YG= 50). The price guarantee is $10.00 per bushel (Pg= $10.00). An indemnity is paid if actual yield falls below the guaranteed level. Insurance indemnities are calculated by multiplying the yield loss in bushels times the guaranteed price level. Show your work. (10 pts.) Insurance Questions Use the information in the table below to answer questions 5-7. Yield Soybean Yield (bushels/acre) Weather Insurance Indemnity Conditions Probability Yield Loss 5% 31 Severe Drought 10% 42 Very Dry 10% 55 Very Wet 45 5% Flooding 50% 65 Good Weather 20% 70 Great Weather 5. Based in the information in the table, what is the expected soybean yield for this farm in bushels/acre? (10 pts.) 6. Calculate the fair premium for a yield insurance policy which guarantees a yield level of 50 bushels/acre (YG= 50). The price guarantee is $10.00 per bushel (Pg= $10.00). An indemnity is paid if actual yield falls below the guaranteed level. Insurance indemnities are calculated by multiplying the yield loss in bushels times the guaranteed price level. Show your work. (10 pts.)