Find Expected Values, Standard Deviations and Return to Risk Ratios

question 21

Multiple Choice

Find expected values, standard deviations and return to risk ratios.
-A farm owner in upstate New York who grows summer vegetables (e.g. tomatoes)
Must decide whether to employ additional pickers this season. If he does, he could hire
Either migrant workers or local teenagers who need summer employment. The migrant
Workers are more experienced, faster, but more expensive. Although the teenagers will
Work for less, they lack experience and tend to damage plants and produce. His profits
Depend on the growing season as shown below. Suppose the farmer's almanac predicts
The probability of a good growing season this year to be .75. The standard deviation in
Payoffs for hiring migrant workers is

• A) $21,651
• B) $12,990
• C) $5495
• D) $2500
• E) None of the above.

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Definitions:

Circularity

A geometric tolerance that limits the deviation of a feature's shape from a true circle, ensuring roundness.

Straightness

The condition of being free from curves, bends, or angles; linear alignment without deviation.

Cylindricity

A measure of how much an object's geometry deviates from a perfect cylinder, considering the roundness and straightness along its axis.

Symbol

A mark or sign used to represent an object, function, or process, often used in technical drawings and specifications.