A farmer is considering planting five possible crop mixes The outcomes depend on the weather (dry, average, or rainy) Assume the three possible weather states have probabilities dry 30 , average 40 , rainy 30 Answer the following two questions Dry Average Rainy Mix A 1 1 8 Mix B 5 1 5 Mix C 1 3 4 Mix D 2 2 3 Mix E 3 0 1 A B C D E F G H I J Which planting decision has the highest expected monetary value A B C D E F G H I J What is the expected value of perfect information A mix A B mix B C mix C D mix D E mix E F 2 4 G 2 5 H 2 6 I 2 8 J 3 0

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Question: A farmer is considering planting five possible crop mixes. The outcomes depend on the weather (dry, average, or rainy). Assume the three possible weather states

A farmer is considering planting five possible crop mixes. The outcomes depend on the weather (dry, average, or rainy). Assume the three possible weather states have probabilities: dry = 30%, average = 40%, rainy = 30%. Answer the following two questions.

	Dry	Average	Rainy
Mix A	-1	1	8
Mix B	5	-1	5
Mix C	-1	3	4
Mix D	2	2	3
Mix E	3	0	-1

- A. B. C. D. E. F. G. H. I. J.	Which planting decision has the highest expected monetary value?
- A. B. C. D. E. F. G. H. I. J.	What is the expected value of perfect information?

A.	mix A
B.	mix B
C.	mix C
D.	mix D
E.	mix E
F.	2.4
G.	2.5
H.	2.6
I.	2.8
J.	3.0

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