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1. Solve for the Yield Loss 2. Solve for Yield Insurance indemnity 3. Solve for expected yield 4. Solve for Fair Premium Farm Information for

1. Solve for the Yield Loss

2. Solve for Yield Insurance indemnity

3. Solve for expected yield

4. Solve for Fair Premium
Farm Information for Questions 5 and 6 Weather Conditions Probability Yield Loss Yield Insurance Indemnity Cavara Draucht - Formula Bar Very Dry Very Wet 5% 10% 10% Soybean Yield (bushels/acre) 31 42 55 45 T Flooding Good Weather Great Weather 5% 50% 20% 70 Guarantee (bu) Price $10.00 Question 5 5 Question 6 Expected Yield Fair Prem

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