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Problem 3: Suppose there is a type of Fertilizer if it is used today, it might generate more yields than usual. But of course, it
Problem 3: Suppose there is a type of Fertilizer if it is used today, it might generate more yields than usual. But of course, it all depends on the weather. According to an agribusiness expert, if 300 kg are used, the revenue for farmers would be $20,000 with good weather, $10,000, with average weather, and only $6,000 with poor weather. Likewise, the revenue would be $26, 000, $14,000, and $0, respectively, for 400 kg, and finally, $34, 000, $15,000 and $-10, 000, with 500 kg of fertilizer. The probabilities for good, average, and bad weather are: 0.2, 0.5, and 0.3, respectively. The cost of a Kg of that fertilizer is 40 dollars. Would you buy 300, 400 or 500 kg of that fertilizer? Why
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