Prepare a Payoff Matrix
-A Farmer Must Decide on Which $\$ 13,000$

Multiple Choice

Prepare a payoff matrix
-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 but is at a higher elevation and would not be affected by flooding. If he uses the low-lying piece of land and there is no flooding he will make a profit of $\$ 13,000$ . If he uses the low-lying piece of land and there is flooding, he will lose $\$ 5000$ . If he uses the higher piece of land and there is no flooding, he will make a profit of $\$ 10,000$ . If he uses the higher piece of land and there is flooding, he will make a profit of $\$ 14,000$ . (If there is flooding there will be a smaller supply of the crop and his profit will be higher) . Prepare a payoff matrix.

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