Work Sheet #9 A farmer in Arizona has a choice between planting water-hungry crop and hardy crop. Both crops cost $100,000. The gross returns on these plants depend on the annual rainfall. If the annual rainfall exceeds 12 inch (50% probability), water-hungry crop's gross return is $160,000. If the annual rainfall is less than 12 inch (50% probability), water-hungry crop's gross return is $45,000. For hardy crop, the gross return is $120,000 if the annual rainfall exceeds 12 inch, and is $90,000 if the annual rainfall is less than 12 inch. (A) Suppose that the farmer spends his own money. Find the net prots and expected net prot (expected average gross retum minus cost) for the case of choosing waterhungry and the case of choosing hardy crop. Fill in the blanks. $.I-_$- Net prot (Annual rainfall12 inch) Ex ' ected net ret __