Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 24 May 2015, 13:21

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Crops

Author Message
TAGS:
Manager
Joined: 22 May 2007
Posts: 121
Followers: 1

Kudos [?]: 1 [0], given: 0

Crops [#permalink]  06 Nov 2007, 22:57
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
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? .167 .200 .250 .333 .350 SVP Joined: 29 Aug 2007 Posts: 2496 Followers: 58 Kudos [?]: 563 [0], given: 19 Re: Crops [#permalink] 07 Nov 2007, 00:17 Hayabusa wrote: 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?

.167
.200
.250
.333
.350

x (90,000 - 40,000) + (1-x) (60000 - 60000) = 10000
x = 10000/50000
x = 0.2 or 20%.
Re: Crops   [#permalink] 07 Nov 2007, 00:17
Similar topics Replies Last post
Similar
Topics:
7 Rice is a staple crop in the country of Bhupet, and ... 5 13 Oct 2013, 16:01
4 Believed once to be essential in preventing crop 7 16 May 2013, 23:20
Here can we change the context from crops to crop???? The OA 1 10 Jan 2012, 21:01
3 If there is a drought that ruins the wheat crop of a large 15 12 Jul 2011, 18:32
CR:Crop Yields 17 08 Oct 2006, 14:36
Display posts from previous: Sort by