A farmer wants to decide which of the three crops he should plant on his 100-acre farm. The profit from each is dependent on the rainfall during the growing seasons. The farmer has categorized the amount of rainfall as high, medium, low. His estimated profit for each is shown in the table. If the farmer wishes to plant only one crop, decide which will be his choice using the EOL rule, prove your judgement by comparing the EOL pay-offs for each crop. (Indicate the EOL in each crop, comparison and the right choice).
A farmer wants to decide which of the three crops he should plant on his 100-acre farm. The profit from each is dependent on the rainfall during the growing seasons. The farmer has categorized the amount of rainfall as high, medium, low. His estimated profit for each is shown in the table. If the farmer wishes to plant only one crop, decide which will be his choice using the EOL rule, prove your judgement by comparing the EOL pay-offs for each crop. (Indicate the EOL in each crop, comparison and the right choice).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A farmer wants to decide which of the three crops he should plant on his 100-acre farm. The profit from each is dependent on the rainfall during the growing seasons. The farmer has categorized the amount of rainfall as high, medium, low. His estimated profit for each is shown in the table. If the farmer wishes to plant only one crop, decide which will be his choice using the EOL rule, prove your judgement by comparing the EOL pay-offs for each crop. (Indicate the EOL in each crop, comparison and the right choice).
Transcribed Image Text:Alternative
Crop A
Crop B
Crop C
PROBABILITY
Rainfall
Medium
3500
3500
4500
0.5
High
7000
2000
4500
0.3
Q Zoom
Low
1500
6000
4000
0.2
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