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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
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