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Farmer McCoy can plant either corn or soybeans. The probabilities that the next harvest prices will go up , stay the same, or go down
Farmer McCoy can plant either corn or soybeans. The probabilities that the next harvest prices will go up stay the same, or go down are and respectively. If the prices go up the corn crop will net $ and the soybeans will net $ If the prices remain unchanged, McCoy will barely break even. But if the prices go down, the corn and soybeans crops will sustain losses of $ and $ respectively.
a Represent McCoys problem as a decision tree.
b Which crop should McCoy plant?
Please Explain, calculate and find answer detailly step by step because I want to understand how calculate this type of exercises. And please dont put answers of other experts which answered this question before I asked you.
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