Decision Theory Solutions 1 Farmer Dell owns a moderate size farm with 1,000 acres of arable land. For greater efficiency, Farmer Dell devotes these acres to one crop at a time. He now needs to make a decision as to which of four possible crops to plant for the upcoming growing season. For each of these crops, Farmer Dell has obtained the following estimates of crop yields in bushels / acre and net profit / bushel. Use Minimax, Maximin, Expected Value, and Aspiration criteria to help Farmer Dell determine which crop to plant. Soln: First, convert yield to net profit/acre.

Decision Theory Solutions 2 Soln: Maximin Minimax

Decision Theory Solutions 2 Soln: Probability estimates from the almanac indicate P(dry)=0.3, P(moderate)=0.5, and P(damp)=0.2. Then Expected Value Farmer Dell would like to make at least $3 per acre in order to meet other financial obligations. Aspiration