The US Department of Agriculture Estimates That the Yearly Yield of of Limes

question 85

Multiple Choice

The U.S. Department of Agriculture estimates that the yearly yield of limes per acre is distributed as follows:
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Yield, bushels } \\\text { per acre }\end{array} & \text { Probability } \\\hline 350 & .10 \\\hline 400 & .18 \\\hline 450 & .50 \\\hline 500 & .22 \\\hline\end{array}$$ The estimated average price per bushel is $16.80.
-Use the following random numbers to simulation crop yield for 10 years: 37, 23, 92, 01, 69, 50, 72, 12, 46, 81. What is the estimated crop yield from the simulation?

• A) 425
• B) 442
• C) 440
• D) 475

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ranking over bundles of goods, showing the level of satisfaction or utility derived.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type; commodities are often used as inputs in the production of other goods or services.

Income

Earnings garnered from employment or investing, often received periodically.

Budget Constraint

A line representing the combination of goods and services that a consumer can purchase with a given income.