Attempts Score / 2 8. Creating a payoff table A farmer who grows grapes for winemakers is trying to decide whether to pick her wine grapes early this year. Some weather forecasters are predicting an early frost. If she picks the grapes early, they will not be as high quality as they would have been had they been left on the vine, but they will not suffer from a frost. However, if she leaves the grapes on the vine and there is a frost, the grapes will have an even greater degradation in quality. The profit the farmer earns from her crop depends upon the quality of the grapes. The farmer uses decision analysis to make her decision. She expects her crop will generate $200K in profits if the grapes are left on the vine for 2 more weeks and there is no frost. If a frost occurs during this time, she expects $150K less than this. Alternatively, if she picks the grapes early, she expects to earn $80K less, but will avoid the potential early frost. Which of the following has no bearing on the farmer's optimal decision? The price the farmer expects the winemakers will pay for frost-damaged grapes The probability there is a frost in the next 2 weeks The probability the farmer decides to pick the crop early The price the farmer expects the winemakers will pay for grapes picked early The probability there is no frost in the next 2 weeks Complete the following payoff table (in thousands of dollars). States of Nature a (Pick early) a2 (Don't pick early) $1 (No frost) S2 (Frost) 120 120 200 50 Save & Continue Continue without saving