Mathematics, 22.04.2020 02:02 sabrinamarie391
A citrus grower anticipates a profit of $100,000 this year if the nightly temperatures remain mild. Unfortunately, the weather forecast indicates a 10% chance that the temperature will drop below freezing during the next week. Such freezing weather will destroy 40% of the crop and reduce the profit to $60,000. However, the grower can protect the citrus fruit against the possible freezing at a cost of $5000. Should the grower spend the $5000 and thereby reduce the profit to $95,000? Hint: Compute E(X), where X is the profit the grower will get if he does nothing to protect the fruit.
Answers: 1
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A citrus grower anticipates a profit of $100,000 this year if the nightly temperatures remain mild....
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