Neco 2023 Agricultural Science Question 13

Practice objective / multiple choice question 13 from the 2023 Neco Agricultural Science examination.

Neco 2023 Agricultural Science Objective / Multiple Choice Hard Difficulty
Question 13 NECO • 2023 • AGRICULTURAL_SCIENCE • objective

A farmer plans to grow maize. Fixed costs are ₦150 000 per season and variable cost is ₦45 000 per hectare. Expected yield is 3.2 tonnes per hectare. The market price per tonne is uncertain: with probability 0.6 the price is ₦120 000, and with probability 0.4 it is ₦90 000. The farmer can choose to plant either 2 ha or 3 ha. For each option, compute the expected profit and the standard deviation of profit. Which planting area maximises expected profit, and what are its expected profit and risk (standard deviation)?

Answer Options

Correct Answer A. 3 ha; expected profit ₦751,800; standard deviation ≈ ₦141,100
B. 2 ha; expected profit ₦451,200; standard deviation ≈ ₦94,100
C. 2 ha; expected profit ₦600,000; standard deviation ≈ ₦120,000
D. 3 ha; expected profit ₦720,000; standard deviation ≈ ₦150,000
Correct Answer
A
Correct Option:
3 ha; expected profit ₦751,800; standard deviation ≈ ₦141,100

About This Question

This is Neco 2023 Agricultural Science Question 13. It is one of the objective questions from the 2023 Neco Agricultural Science examination.

Difficulty level: Hard .

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