Question: A farmer (with wealth zero) has to decide whether to fertilize her field or not. Her profit depends both on her decision and whether

A farmer (with wealth zero) has to decide whether to fertilize her

A farmer (with wealth zero) has to decide whether to fertilize her field or not. Her profit depends both on her decision and whether or not it rains. Her profit in each of the 4 possible cases is No fertilizer Fertilizer Rain 16 No rain 9 25 0 Suppose the probability of rain is Will the farmer 1) U(w) = w 1/2? - fertilize her field if 2) U(w) = w? 2) U(w) = w? 3) U(w) = w?

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