A farmer is considering two types of crops to grow next season according to predicted weather conditions. There is a 55% chance of good weather conditions and a 45% chance of bad. The expected gains and losses under each weather condition are shown in the table here below.

Weather conditions Crop Good Bad A $200,000 $120,000 B 350,000 −100,000 Using the expected value of each crop alternative, determine which should be selected.

( LO,1)