Question: help pleasee D Question 19 4 pts Use the information below to answer questions 24 and 25 A farmer wants to estimate the fertilizer use

help pleasee D Question 19 4 pts Use thehelp pleasee D Question 19 4 pts Use thehelp pleasee

D Question 19 4 pts Use the information below to answer questions 24 and 25 A farmer wants to estimate the fertilizer use and water use on his corn yield. He estimates the following regression: Yield = 125 + 25Fertilizer + 5Water Where, Yield is in bushels per acre Fertilizer is a dummy variable that takes the value 1 if the farmer uses fertilizer and zero otherwise Water is in gallons/acre What is the relationship between Water use and yield? (select all that apply) None of the answers are correct If water use increases by 1 gallon per acre, yield would increase by 5 bushels per acre If water use decreases by 1 gallon per acre, yield would increase by 5 bushels per acre If water use decreases by 1 gallon per acre, yield would decrease by 5 bushels per acre If water use increases by 1 gallon per acre, yield would decrease by 5 bushels per acre D Question 23 4 pts A farmer is interested in selling 5000 bushels of wheat on May 2020. He has a target price of $3.95/bushel and wants to hedge against downward price movements. There are no wheat futures contracts with maturity in May, but there are wheat futures with maturity in December. The size of one wheat futures contract with maturity in December is 1000 bushels. What should be the farmer's strategy to hedge against downward price movements? O Short 5 December futures for wheat today, offset position on May 2020, sell wheat on the spot market on May 2020 O Long 1 December futures for wheat today, offset position on May 2020, sell wheat on the spot market on May 2020 O Long 5 December futures for wheat today, offset position on May 2020, sell wheat on the spot market on May 2020 O Short 1 December futures for wheat today, offset position on May 2020, sell wheat on the spot market on May 2020 O None of the answers are correct

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