If the farmer uses pesticides he expects a crop of 60,000 bushels; if he does not use pesticides he expects a crop of 55,000 bushels.  The cost of pesticides is $20,000 and the other costs associated with planting and harvesting the crop total $450,000. The price of corn at harvest time will either be $10.00 with probability of 0.50 or it will be $12.00 with probability 0.50, so if the farmer decides to sell the crop at harvest, the expected price per bushel that he will receive is $11.00. What will be his total production cost if he uses pesticides?     a. $430,000.00   b. $470,000.00   c. $450,000.00   d. $660,000.00

You are attempting to establish the utility that your boss assigns to a payoff of $1,200. You have established that the utility for a payoff of $0 is zero and the utility for a payoff of $10,000 is one. Your boss has just told you that they would be indifferent between a payoff of $1,200 and a lottery which has a payoff of $10,000 where the probability of losing is 0.9. What is your boss' utility for $1,200? (Round your answer to 1 decimal place.) Utility of $1,200

At the beginning of each day, a patient in the hospital is classifed into one of the three conditions: good, fair or critical. At the beginning of the next day, the patient will either still be in the hospital and be in good, fair or critical condition or will be discharged in one of three conditions: improved, unimproved, or dead. The transistion probabilities for this situation are                                         Good    Fair    Critical                        Good         0.65     0.20    0.05                        Fair            0.50     0.30     0.12                        Critical       0.51     0.25     0.20               Improved       Unimproved         Dead Good       0.06               0.03                    0.01 Fair          0.03               0.02                    0.03 Critical     0.01               0.01                    0.02   For example a patient who begins the day in fair condition has a 12% chance of being in critical condition the next day and a 3%…

Consider the following information for the Alachua Retirement Fund, with a total investment of $4 million.   [5]                           Stock   Investment      Beta                             A     $   400,000        1.2                             B         600,000      -0.4                             C       1,000,000        1.5                             D       2,000,000        0.8 The market required rate of return is 12 percent, and the risk-free rate is 6 percent.  What is its required rate of return? Stock A has the following probability distribution of expected returns: [5]                         Probability                   Rate of Return                                 0.1                       -15%                                 0.2                       0                                 0.4                       5                                 0.2                       10 25 What is Stock A’s coefficient of variation? What is Stock T’s coefficient of…

Suppose that you have two four-sided dice that are each equally weighted (i.e. equal chance of any of the four sides landing face up). One of them has values [12.5968, 2, -2 and -12.5968] , the other [12.5968, 4, -2 and -12.5968] Which of them has a σ of 9 using the probability model approach.   a) [12.5968, 2, -2 and -12.5968]   B) [12.5968, 4, -2 and -12.5968]

A car insurance company divide their policy holders into two categories: more-risky and less-risky drivers. The more-risky drivers account for 25% of the total number of drivers insured by the company. The probabilities that a more-risky and a less-risky driver will file a claim within a year are 0.36 and 0.08, respectively. Answer the following questions: 1. What is the probability that any one of the company’s policy holders will file the claim within a given year?

When a choice is communicated in terms of potential losses, most people choose the option with less risk. -True -False

GreenLeaf Electronics offers a new gadget that has been gaining popularity. The probability distribution for the number of gadgets sold per day is provided below. Calculate the average number of gadgets sold per day and determine the variance. NUMBER OF GADGETS SOLD    PROBABILITY100                                                      0.10200                                                            0.15300                                                             0.25400                                                             0.25500                                                            0.20600                                                            0.05

If a student attends every business analytics class, the probability of passing the course is 0.90; but if the student only attends randomly, then the probability of passing the course is 0.30. If a student fails, he or she can take a makeup exam where the probability of passing is 0.60 if the student has attended every class. This probability of passing the makeup exam drops to 0.20 if the student has attended at random. Passing the course is worth 5 credits. Full-time attendance "costs" 3 credits in terms of energy and time, whereas random attendance "costs" only 1 credit. Draw a decision tree and use the decision tree to decide which is the best attendance pattern to adopt. Assume that all failing students take the makeup exam and that the payoff for failing is equal to 0 credit. Draw a decision tree and determine the payoff for each decision and event node. Which alternative should the student choose?

Please answer everything in the photo.