Question: Mostly Rainy - 0.1 Half rainy year - 0.5 Mostly summer - 0.4 add new vegetables $110,000 $65,000 $55,000 Increase barley production $90,000 $78,000 $70,000
Mostly Rainy - 0.1 Half rainy year - 0.5 Mostly summer - 0.4 add new vegetables $110,000 $65,000 $55,000 Increase barley production $90,000 $78,000 $70,000 do nothing $5000 $4000 $1500 The maximum return for each of the option is 1) for adding new vegetable option, the return is maximum when the weather is mostly rainy and the return is $110,000 2) for increasing the barley production option, the return is maximum when the weather is mostly rainy and the return is $90,000. 3) if we do nothing, the return is maximum when the weather is mostly rainy and the return is $5,000. Now, by the maxi-max criterion, the option to be chosen is to add new vegetables and the return is $110,000. The minimum return for each of the option is 1) for adding new vegetable option, the return is minimum when the weather is mostly sunny and the return is $55,000 2) for increasing the barley production option, the return is minimum when the weather is mostly sunny and the return is $70,000. 3) if we do nothing, the return is minimum when the weather is mostly sunny and the return is $1,500. Now, by the maxi-max criterion, the
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