Question

A farmer is selling bushels of cornWhen a bushel has inedible stalks, the supermarket gets a discount on the entire bushel. The farmer profits $8 per bushel with all edible stalks and loses $4 for every bushel with inedible stalks. If 95% of the bushels have all edible stalks and % have inedible stalks, what is the expected profit the farmer makes?

Answer 1

$7.40/bushel

Explanation:

i took the test and got it right

Answer 2

Answer: $7.80

Explanation:

Based on the information given in the question, the expected profit that the farmer makes will be:

= (Probability of edible stocks × Profit) - (Probability of inedible stocks × Loss)

= (95% × $8) - (5% × $4)

= (0.95 × $8) - (0.05 × $4)

= $7.60 + $0.20

= $7.80

Therefore, the expected profit that the farmer makes is $7.80.