A B D E 1 Farm Information for Questions 5 and 6 Probability Soybean Yield (bushels/acre) Yield Loss Yield Insurance Indemnity 31 19 Weather Conditions 2 3 Severe Drought 4 Very Dry 5 Very Wet 6 Flooding 7 Good Weather 5% 10% 42 8 55 0 $190.00 $80.00 $0.00 $50.00 $0.00 $0.00 45 10% 5% 50% 20% 5 65 0 Great Weather 70 0 8 9 10 11 50 Guarantee (bu) Price 12 $10.00 13 60.00 14 Question 5 15 Question 6 16 Expected Yield Fair Prem $20.00 17 18 19 no H J L MN P R S T U U Farm information for Question 7 Weather Conditions Probability Soybean Yield (bushels/acre) 31 Severe Drought Very Dry Very Wet Flooding Good Weather 7% 20% 10% 5% 42 55 45 65 42% 16% Great Weather 70 Question 7 Would the same yield insurance policy be more or less expensive for this farm compared to what you found for the farm in question 6? Briefly explain your answer by relating it to the two factors which determine the price of insurance. Type answer here A B D E 1 Farm Information for Questions 5 and 6 Probability Soybean Yield (bushels/acre) Yield Loss Yield Insurance Indemnity 31 19 Weather Conditions 2 3 Severe Drought 4 Very Dry 5 Very Wet 6 Flooding 7 Good Weather 5% 10% 42 8 55 0 $190.00 $80.00 $0.00 $50.00 $0.00 $0.00 45 10% 5% 50% 20% 5 65 0 Great Weather 70 0 8 9 10 11 50 Guarantee (bu) Price 12 $10.00 13 60.00 14 Question 5 15 Question 6 16 Expected Yield Fair Prem $20.00 17 18 19 no H J L MN P R S T U U Farm information for Question 7 Weather Conditions Probability Soybean Yield (bushels/acre) 31 Severe Drought Very Dry Very Wet Flooding Good Weather 7% 20% 10% 5% 42 55 45 65 42% 16% Great Weather 70 Question 7 Would the same yield insurance policy be more or less expensive for this farm compared to what you found for the farm in question 6? Briefly explain your answer by relating it to the two factors which determine the price of insurance. Type answer here