Define the best crop to plant according to the decision

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Reference no: EM1357543

A farmer in Holland must decide which crop to plant next season: Wheat, corn, or Barley. The return on each will be determined by weather conditions. The profit the farmer will realize from each crop, given the weather conditions, is shown in the following table:

State of Nature

$ Good Bad

Wheat 100,000 32,000

Corn 60,000 40,000

Barley 80,000 20,000

Determine the best crop to plant according to the following decision criteria.

(a) Maximax

(b) Maximin

(d) Hurwicz (alpha = .4)

(e) Equal likelihood

Reference no: EM1357543

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