Case:

A farmer in Des Moines must decide which crop to plant next year on his land: corn, peanuts, or soybeans. The return from each crop will be determined by whether a new trade bill with Russia passes the Senate. The profit the farmer will realize from each crop, given the two possible results on the trade bill, is shown in Table 2.

Crop	Trade Bill (RM)
	Pass	Fail
Corn	35,000	8,000
Peanuts	18,000	12,000
Soybeans	22,000	20,000

Table 2: Payoff table

Question:

1. Identify the SIX (6) decision process in operations.

2. Identify the best crop to plant, using the following decision criteria. (i) Maximax Criterio. (ii) Maximin Criterion. (iii) Minimax Regret Criterion.

c. Assume that it is now possible to estimate a probability of 0.70 that pass and a probability of 0.30 that will fail the Senate. Compute the best decision by using:

1. Expected Value (EV).
2. Expected Value of Perfect Information (EVPI).