Find Expected Values, Standard Deviations and Return to Risk Ratios

question 12

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 return to risk ratio for
Hiring migrant workers is

• A) 8.40
• B) 4.05
• C) 2.89
• D) .346
• E) None of the above.

Grasp the implications of nondisclosure or misinformation in contract creation and enforcement.

Distinguish the roles and liabilities of guardians or individuals in positions of power in contract formations.

Understand the concept of déjà vu and its typical triggers.

Recognize patterns of forgetting and memory retention over time.

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Definitions:

Secured

Pertaining to a loan or obligation that is backed by collateral to reduce the risk of lending.

Security Interest

A legal claim or liens on property as collateral for the payment of a debt or performance of some other obligation.

Personal Property

Movable assets or belongings, excluding real estate and buildings, owned by an individual or entity.

Third Parties

Individuals or entities that are not directly involved in a contract or negotiation but may be affected by its outcomes or have an interest in its terms.