Rienzi Farms Grows Sugar Cane and Soybeans on Its 500

question 13

Multiple Choice

Rienzi Farms grows sugar cane and soybeans on its 500 acres of land. An acre of soybeans brings a $1000 contribution to overhead and profit; an acre of sugar cane has a contribution of $2000. Because of a government program no more than 300 acres may be planted in soybeans. During the planting season 1500 hours of planting time will be available. Each acre of soybeans requires 2 hours, while each acre of sugar cane requires 5 hours. The company seeks maximum contribution (profit) from its planting decision. What is the optimal solution?

• A) 300 acres of soybeans, 180 acres of sugar cane
• B) 300 acres of soybeans, 200 acres of sugar cane
• C) 0 acres of soybeans, 300 acres of sugar cane
• D) 500 acres of soybeans, 0 acres of sugar cane
• E) 300 acres of soybeans, 100 acres of sugar cane

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Definitions:

Significance Level

The likelihood of mistakenly dismissing the null hypothesis, typically represented by alpha, when in truth it holds.

Null Hypothesis

A statement or hypothesis that assumes no statistical significance or effect exists in a set of observations or experiment.

Two-Tailed Test

A hypothesis test in which the critical area for a rejection of the null hypothesis is in both tails of the probability distribution, allowing for testing of deviations in both directions.

Population Mean

The average of all the values in a population, representing the central tendency of the total population.