Question
White and Pink Farm is deciding whether to protect their strawberry crops with metal-framed greenhouses which cost P200,000. Regardless of the greenhouse, the harvests could
White and Pink Farm is deciding whether to protect their strawberry crops with metal-framed greenhouses which cost P200,000. Regardless of the greenhouse, the harvests could be sold for P1,200,000 under continued good weather. However, should there be strong typhoons and no greenhouses were placed, crops could only be sold for P800,000. With the greenhouses set up and typhoons affecting the crops of other farms, harvest could be sold at P1,800,000.What must be the probability that there is continued good weather for White and Pink Farm to be indifferent to spending the additional cost of the greenhouses?
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