Solved

Use the Payoff Matrix to Determine the Best Strategy

Question 190

Multiple Choice

Use the payoff matrix to determine the best strategy.
-A farmer must decide on which of two pieces of land to grow his crops. The first piece of land has better soil and will yield a larger harvest. However this piece of land is low lying and is coastal and his crops will be destroyed in the event of a storm and flooding. The second piece of land has poorer soil and will yield a smaller harvest but is at a higher elevation and would not be affected by flooding. He estimates that the payoff matrix is as follows:
Use the payoff matrix to determine the best strategy. -A farmer must decide on which of two pieces of land to grow his crops. The first piece of land has better soil and will yield a larger harvest. However this piece of land is low lying and is coastal and his crops will be destroyed in the event of a storm and flooding. The second piece of land has poorer soil and will yield a smaller harvest but is at a higher elevation and would not be affected by flooding. He estimates that the payoff matrix is as follows:   What is the farmer's best strategy if he is a pessimist? A)  Use the land that is at a lower elevation B)  Use the land that is at a higher elevation C)  Wait and see What is the farmer's best strategy if he is a pessimist?


A) Use the land that is at a lower elevation
B) Use the land that is at a higher elevation
C) Wait and see

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents