Question

Question 1: (10 points) Dwight Moody is the manager of a large farm. For greater efficiency, he always devotes the farm to growing one crop at a time. Dwight needs to decide which crop to grow during the next season. To this end, he estimates the following crop yields: Weather during the season Crop 1 Crop 2 Crop 3 Crop 4 dry moderate damp 30 25 40 60 50 30 35 25 0.5 60 40 35 30 0.3 Probability 0.2 1. (4 points) Determine which crop Dwight should grow according to the maximin, maximax, maximum likelihood and expected value criteria in order to maximize the yield. 2. (6 points) Dwight is sure about the probability of moderate weather, but he is less sure about the probabilities of dry and damp weather. Assuming Dwight wants to maximize the expected value, determine the impact of the probabilities of dry and damp weather on Dwight's optimal decision.

Answer 1

As per HOMEWORKLIB RULES we has to write only one question.