From past experience, a wheat farmer finds that his annual profit (in dollars) i

Question

From past experience, a wheat farmer finds that his annual profit (in dollars) is 80,000 if the summer weather is typical exist51,000 if the weather is dry, and exist29,000 if there is a severe that bureau records indicate that the probability is 0 72 of typical weather 0.22 of unusually dry weather and 0.06 of a severe storm. Let x denote the tamer's profit next year. Complete parts a a. Construct a table with the probability distribution of X Complete the table below (Type integers or decimals. Do not round) b. What is the probability that the profit is exist51,000 or less? The probability is (Type an integer or a decimal Do not round) c. Find the mean of the probability distribution of X interpet Select the correct choice below and t in the answer box to complete your choice (Round to the nearest dollar as needed) A. The wheat tamer expects to earn a longterm average profit of exist per year B. The wheat tamer will earn profit of exist next year

Explanation / Answer

Ans: a)probability distribution of profit x:

b)Probability that profit is 51000 or less=0.22+0.06=0.28

c)Expected profit=0.72*80000+0.22*51000+0.06*29000=57600+11220+1740=70560

Option A is correct i.e wheat farmer expects to eran lon term average profit of $70560 per year.

Typical unusually dry severe storm Profit,x 80000 51000 29000 p(x) 0.72 0.22 0.06

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