Needs help 5-7 please

Farm Information for Questions and Farminemation for Questiva? Yielce Weather Conditions Yield Los Weather Cond. Probably Soybean Yield (budd/acne) 31 Seben shere) 31 Serse Dret Very Dry Very We 204 Severe Darth Very Dry Very We Flooding Goed Weather Grear Weather 39 10 10% 55 55 45 65 20 55 45 65 20 90 20% Goed Weather Great Weather Gubu) Price SO SI000 Question Questions Questo 6 Expected Yield Fair Prem Would the same yield isce policy be more or less expive for this form compared to what you found for the firm in question 6? Bridly explain your answer by relating to the two factoes which determine the price of insurance Tipe never her 5. Based in the information in the table, what is the expected soybean yield for this farm in bushels/acre? (10 pts.) 6. Calculate the fair premium for a yield insurance policy which guarantees a yield level of 50 bushels/acre (YG = 50). The price guarantee is $10.00 per bushel (PG = $10.00). An indemnity is paid if actual yield falls below the guaranteed level. Insurance indemnities are calculated by multiplying the yield loss in bushels times the guaranteed price level. Show your work. (10 pts.) 7. Suppose another farm has the following possible yield outcomes and probabilities (see table below). Would the same yield insurance policy be more or less expensive for this farm compared to what you found in question 6? Briefly explain your answer by relating it to the two factors which determine the price of insurance. (10 pts.) Weather Conditions Severe Drought Very Dry Very Wet Flooding Good Weather Great Weather Probability 7% 20% 10% 5% 42% 16% Soybean Yield (bushels/acre) 312 422 55e 452 652 702 Farm Information for Questions and Farminemation for Questiva? Yielce Weather Conditions Yield Los Weather Cond. Probably Soybean Yield (budd/acne) 31 Seben shere) 31 Serse Dret Very Dry Very We 204 Severe Darth Very Dry Very We Flooding Goed Weather Grear Weather 39 10 10% 55 55 45 65 20 55 45 65 20 90 20% Goed Weather Great Weather Gubu) Price SO SI000 Question Questions Questo 6 Expected Yield Fair Prem Would the same yield isce policy be more or less expive for this form compared to what you found for the firm in question 6? Bridly explain your answer by relating to the two factoes which determine the price of insurance Tipe never her 5. Based in the information in the table, what is the expected soybean yield for this farm in bushels/acre? (10 pts.) 6. Calculate the fair premium for a yield insurance policy which guarantees a yield level of 50 bushels/acre (YG = 50). The price guarantee is $10.00 per bushel (PG = $10.00). An indemnity is paid if actual yield falls below the guaranteed level. Insurance indemnities are calculated by multiplying the yield loss in bushels times the guaranteed price level. Show your work. (10 pts.) 7. Suppose another farm has the following possible yield outcomes and probabilities (see table below). Would the same yield insurance policy be more or less expensive for this farm compared to what you found in question 6? Briefly explain your answer by relating it to the two factors which determine the price of insurance. (10 pts.) Weather Conditions Severe Drought Very Dry Very Wet Flooding Good Weather Great Weather Probability 7% 20% 10% 5% 42% 16% Soybean Yield (bushels/acre) 312 422 55e 452 652 702