Farm Information for Questions 5 and 6 Farm information for Question 7 Weather Conditions Probability Yield Loss Yield Insurance Indemnity Weather Conditions Soybean Yield (bushels/acre) 31 Probability Soybean Yield (bushels/acre) 31 Severe Drought Very Dry 42 42 Very Wet 55 5% 10% 10% 5% 50% 20% Severe Drought Very Dry Very Wet Flooding Good Weather 55 7% 20% 10% 5% 42% 16% 45 45 Flooding Good Weather 65 65 70 Great Weather 70 Great Weather Guarantee (bu) Price 50 $10.00 Question 7 Question 5 Question 6 Expected Yield Fair Prem Would the same yield insurance policy be more or less expensive for this farm compared to what you found for the farm in question 6? Briefly explain your answer by relating it to the two factors which determine the price of insurance. Farm Information for Questions 5 and 6 Farm information for Question 7 Weather Conditions Probability Yield Loss Yield Insurance Indemnity Weather Conditions Soybean Yield (bushels/acre) 31 Probability Soybean Yield (bushels/acre) 31 Severe Drought Very Dry 42 42 Very Wet 55 5% 10% 10% 5% 50% 20% Severe Drought Very Dry Very Wet Flooding Good Weather 55 7% 20% 10% 5% 42% 16% 45 45 Flooding Good Weather 65 65 70 Great Weather 70 Great Weather Guarantee (bu) Price 50 $10.00 Question 7 Question 5 Question 6 Expected Yield Fair Prem Would the same yield insurance policy be more or less expensive for this farm compared to what you found for the farm in question 6? Briefly explain your answer by relating it to the two factors which determine the price of insurance