Exhibit 9-1
a Farmer Must Decide Whether to Take Protective

question 23

Essay

Exhibit 9-1
A farmer must decide whether to take protective action to limit damage to his grapefruit crop in the event that the overnight temperature falls to a level well below freezing. If the temperature drops too low he runs the risk of losing his entire crop, valued at $75,000. Based on the National Weather Service, the probability of such a temperature drop is 60%. He can insulate his crop by spraying water on all the trees, which will cost $20,000. This action might succeed in protecting the crop, with the following $$\begin{array} { l l } \text { Probability } & \text { Damage } \\0.30 & \$ 0 \\0.15 & \$ 5,000 \\0.10 & \$ 10,000 \\0.15 & \$ 15,000 \\0.30 & \$ 20,000\end{array}$$
-Refer to Exhibit 9-1.Find the highest cost of insulating the grapefruits for which the farmer prefers to insulate his crop.

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Definitions:

Storming

A phase in group development characterized by conflict and competition as team members clarify their roles and expectations.

Process Gains

Factors that contribute to team effectiveness.

Synergy

The concept that the total amount of work produced by a team is greater than the amount of work produced by individual members working independently.

Sequential Interdependence

A work process situation where the output of one task becomes the input for the next task, requiring coordination and timing between tasks.