Question: HELP QUICK PLZ Farmer Tom is trying to decide what to produce on his farm in the upcoming season. In the past, he has usually

HELP QUICK PLZ
HELP QUICK PLZ Farmer Tom is trying to decide what to produce
on his farm in the upcoming season. In the past, he has

Farmer Tom is trying to decide what to produce on his farm in the upcoming season. In the past, he has usually grown Crop A. If he grows Crop A, there is a 70 percent chance that his crop will yleld $15,000 in profit and a 30 percent chance that he will earn zero profit. Instructions: Enter your answers as a whole number. a. What is the expected value of his profit if he grows only Crop A? Now Farmer Tom considers dividing his land between two crops: Crop A and Crop B. There is a 5 percent chance that both crops will fail and Tom will earn zero profit. There is a 25 percent chance that only one crop will grow and Tom will earn $6,000 in profit. There is a 60 percent chance that both crops will grow and Tom will earn $15,000 in profit. b. What is the expected value of his profit if he grows both crops? $ c. Which option would a risk-averse farmer choose? Grow only Crop A. The farmer would be indifferent between the two options. Grow both Crops A and B. d. Which option would a risk-seeking farmer choose? The farmer would be indifferent between the two options. Grow both Crops A and B. Grow both Crops A and B. d. Which option would a risk-seeking farmer choose? The farmer would be indifferent between the two options. Grow both Crops A and B. Grow only Crop A. e. Which option would a risk-neutral farmer choose? Grow both Crops A and B. The former would be indifferent between the two options. Grow only Crop A

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