Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A farmer will sow the seeds of a type of plant somewhere. It has three alternative gardens. The farmer estimates that the chance that the

A farmer will sow the seeds of a type of plant somewhere. It has three alternative gardens. The farmer estimates that the chance that the plant will thrive if it is sown in garden 1 is 0.6 and if it grows well he will reap a profit of Rp. 300,000, - per harvest, on the other hand, if he doesn't succeed he will lose Rp. 50.000, -. The chance that the plant will thrive if it is sown in garden 2 is 0.50 with the hope of reaping a profit of Rp. 400,000, - per harvest, and if it doesn't work, you will suffer a loss of Rp. 100,000, -. In the 3 garden the chance of success is 0.55 with the expectation of a profit of Rp. 350,000, -, if it fails, you will lose Rp. 60,000, -. QUESTIONS a) Based on mathematical expectations, which garden will the farmer choose? b) If the chance of success in farm 3 is only 0.5, will the farmer change the first decision? Explain

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Differential Equations With Boundary-Value Problems

Authors: Dennis G Zill, Ellen Monk, Warren S Wright

8th Edition

1285401298, 9781285401294

More Books

Students also viewed these Mathematics questions

Question

Pollution

Answered: 1 week ago

Question

The fear of making a fool of oneself

Answered: 1 week ago