Use the payoff matrix to determine the best strategy.
-A farmer must decide on which of two pieces of land to grow his crops. The first piece of land has better soil and will yield a larger harvest. However this piece of land is low lying and is coastal and his crops will be destroyed in the event of a storm and flooding. The second piece of land has poorer soil and will yield a smaller harvest but is at a higher elevation and would not be affected by flooding. He estimates that the payoff matrix is as follows:
Based on meteorological records from previous years, the farmer estimates the probability of flooding next year to be 0.1 . What is the farmer's best strategy?
A) Wait and see
B) Use the land that is at a higher elevation
C) Use the land that is at a lower elevation
Correct Answer:
Verified
Q186: Find the requested long-range probabilities based
Q187: Use the payoff matrix to determine the
Q188: Use the payoff matrix to determine the
Q189: Use the payoff matrix to determine the
Q190: Use the payoff matrix to determine the
Q192: Use the payoff matrix to determine the
Q193: Use the payoff matrix to determine
Q194: Use the payoff matrix to determine the
Q195: Use the payoff matrix to determine the
Q196: Use the payoff matrix to determine the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents