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Can someone explain to me how to work this problem? My brain has given up.
Under frost-free conditions, Cal Cultivators expects its strawberry crop to have a $60,000 market value. An unprotected crop subject to frost has an expected market value of $40,000. If Cal protects the strawberries against frost, then the market value of the crop is still expected to be $60,000 under frost-free conditions and $90,000 if there is a frost. What must be the probability of a frost for Cal to be indifferent to spending $10,000 for frost protection?
.250
.333
.200
.167
FAR - 11/05/18 - 92BEC - 12/04/18 - 95
AUD - 2/27/19 - 96
REG - 4/17/19 - 93
I’m done!!
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