Determine best crop to plant-maximax-hurwicz

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Reference no: EM13784906

A farmer in Georgia must decide which crop to plant next year on his land: corn, peanuts, or soybeans. The return from each crop will be determined by whether a new trade bill with Russia passes the Senate. The profit the farmer will realize from each crop, given the two possible results on the trade bill, is shown in the following payoff table:

                                             Trade Bill

Crop                            Pass                 Fail

Corn                         $35,000           $ 8,000

Peanuts                    18,000             12,000

Soybeans                22,000                20,00

Determine the best crop to plant, using the following decision criteria.

a. Maximax

b. Maximin

c. Minimax regret

d. Hurwicz

e. Equal likelyhood

Reference no: EM13784906

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