Consider the Following to Answer the Question(s) Below

question 23

Multiple Choice

Consider the following to answer the question(s) below:
A farm owner 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 are not as experienced and tend to damage plants and produce. His profits, taking into account losses from unpicked perished or damaged produce, depend on whether there is a good or bad growing season. The payoffs are shown in the table below.
-Suppose the Farmers' Almanac predicts the probability of a good growing season this year to be 0.75. What is the expected value of hiring teenagers?

• A) $62,500
• B) $52,500
• C) $46,250
• D) $12,990
• E) Indeterminate.

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Definitions:

Panic Attack

A panic attack is a sudden episode of intense fear or anxiety that triggers severe physical reactions when there is no real danger or apparent cause.

Posttraumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a number of different things.

Posttraumatic Stress Disorder

A mental health condition triggered by experiencing or seeing a terrifying event, characterized by flashbacks, severe anxiety, and uncontrollable thoughts about the event.