Please answer step by step why use or not a forecaster. If I calculate the profit without
Question:
Please answer step by step why use or not a forecaster. If I calculate the profit without the values that the forecaster gave in the problem the answer will be different. Will this statement help in the answer ? If I use the value without the one given by the forecaster I chose thecrop B . With the forecaster and the historic I chose the crop A as the best alternative Please help me to answer.
Other questions:
You in the capacity of Block Advisor to farmers are expected to suggest
Which crop should Mr. Moola plant based on existing data?
(Whether it would be economical for the farmer to hire the services of a forecaster. If yes, then how will the result affects the decision process.
Summarize the most important aspects of the case and identify the main and secondary problems. o Graphically shows the decision tree of the case. o Determine the total profit of crops A, B and C. or What is the final suggestion?
Mr. Moola, the owner of Moola Farms is attempting to decide which of three crops he should plant on his 100 acre farm. The profit from each crop is strongly dependent on the rainfall during the growing season. He has categorized the amount of the rainfall as substantial, moderate or light. He estimates his profit for each crop as shown in the table below:
Open table as spreadsheet
Rainfall | Estimated Profit() | ||
---|---|---|---|
Crop A | Crop B | Crop C | |
Substantial | 7,000 | 2,500 | 4,000 |
Moderate | 3,500 | 3,500 | 4,000 |
Light | 1,000 | 4,000 | 3,000 |
Based on the weather in previous seasons and the current projection for the coming season, he estimates the probability of substantial rainfall as 0.2, that of moderate rainfall as 0.3, and that of light rainfall as 0.5.
Furthermore, services of forecasters could be employed to provide a detailed survey of current rainfall prospects as shown in the table.
Open table as spreadsheet
Rainfall | Estimated Profit() | ||
---|---|---|---|
Crop A | Crop B | Crop C | |
Substantial | 0.70 | 0.25 | 0.05 |
Moderate | 0.30 | 0.60 | 0.10 |
Light | 0.10 | 0.20 | 0.70 |
You in the capacity of Block Advisor to farmers are expected to suggest
Which crop should Mr. Moola plant based on existing data?
(Whether it would be economical for the farmer to hire the services of a forecaster. If yes, then how will the result affects the decision process.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill