The Pretty Flower Company starts plants from seed and sells the seedlings to nurseries. They know from experience that about 60% of the calla lily seeds they plant will sprout and become a seedling. Each calla lily seed costs 20 cents, and a pot containing at least one sprouted calla lily seedling can be sold for $2.00. Pots that don’t contain a sprouted seedling must be thrown out. The company figures that costs for a pot, pot-ting soil, water, fertilizer, fungicide and labor are $0.30 per pot (whether or not a seed in the pot sprouts). The Pretty Flower Company is debat-ing between planting 1 or 2 seeds per pot. Help them figure out which choice will be more profit-able by working through the following problems: a. Suppose the Pretty Flower Company plants 1 calla lily seed in each of 100 pots. Using the previous information, approximately how much profit should the Pretty Flower Com-pany expect to make on these 100 pots? Profit is income minus expenses. b. Now suppose that the Pretty Flower Com-pany plants 2 calla lily seeds (1 on the left, 1 on the right) in each of 100 pots. Assume that whether or not the left seed sprouts has no influence on whether or not the right seed sprouts. So, the right seed will still sprout in about 60% of the pots in which the left seed does not sprout. Explain why the Pretty Flower Company should expect about 84 of the 100 pots to sprout at least 1 seed. c. Using part (b), determine how much profit the Pretty Flower Company should expect to make on 100 pots if 2 calla lily seeds are planted per pot. Compare your answer with part (a). Which is expected to be more profitable: 1 seed or 2 seeds per pot? d. What if calla lily seeds cost 50 cents each in-stead of 20 cents each (but everything else stays the same)? Now which is expected to be more profitable: 1 seed or 2 seeds per pot?
The Pretty Flower Company starts plants from
seed and sells the seedlings to nurseries. They
know from experience that about 60% of the
calla lily seeds they plant will sprout and become
a seedling. Each calla lily seed costs 20 cents, and
a pot containing at least one sprouted calla lily
seedling can be sold for $2.00. Pots that don’t
contain a sprouted seedling must be thrown out.
The company figures that costs for a pot, pot-ting soil, water, fertilizer, fungicide and labor are
$0.30 per pot (whether or not a seed in the pot
sprouts). The Pretty Flower Company is debat-ing between planting 1 or 2 seeds per pot. Help
them figure out which choice will be more profit-able by working through the following problems:
a. Suppose the Pretty Flower Company plants
1 calla lily seed in each of 100 pots. Using
the previous information, approximately how
much profit should the Pretty Flower Com-pany expect to make on these 100 pots? Profit
is income minus expenses.
b. Now suppose that the Pretty Flower Com-pany plants 2 calla lily seeds (1 on the left,
1 on the right) in each of 100 pots. Assume
that whether or not the left seed sprouts has no influence on whether or not the right seed
sprouts. So, the right seed will still sprout in
about 60% of the pots in which the left seed
does not sprout. Explain why the Pretty Flower Company should expect about 84 of
the 100 pots to sprout at least 1 seed.
c. Using part (b), determine how much profit the
Pretty Flower Company should expect to make
on 100 pots if 2 calla lily seeds are planted
per pot. Compare your answer with part (a).
Which is expected to be more profitable: 1 seed
or 2 seeds per pot?
d. What if calla lily seeds cost 50 cents each in-stead of 20 cents each (but everything else
stays the same)? Now which is expected to be
more profitable: 1 seed or 2 seeds per pot?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
