A farmer has a field of 70 acres in which he plants potatoes and corn. The seed for potatoes costs $20/acre, the seed for corn c
osts $60/acre, and the farmer has set aside $3000 to spend on seed. The profit per acre of potatoes is $150 and the profit for corn is $50 an acre. How many acres of each should the farmer plant?
1 answer:
A farmer has a field of 70 acres in which he plants potatoes and corn. The seed for potatoes costs $20/acre, the seed for corn costs $60/acre, and the farmer has set aside $3000 to spend on seed. The profit per acre of potatoes is $150 and the profit for corn is $50 an acre. How many acres of each should the farmer plant?
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Answer:
So on this case the 95% confidence interval would be given by (4.95;4.99)
Step-by-step explanation:
Previous concepts
A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".
The margin of error is the range of values below and above the sample statistic in a confidence interval.
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
represent the sample mean
population mean (variable of interest)
s=0.0461 represent the sample standard deviation
n=19 represent the sample size
Confidence interval
The confidence interval for the mean is given by the following formula:
(1)
In order to calculate the critical value we need to find first the degrees of freedom, given by:
Since the Confidence is 0.95 or 95%, the value of and
, and we can use excel, a calculator or a table to find the critical value. The excel command would be: "=-T.INV(0.025,18)".And we see that
Now we have everything in order to replace into formula (1):
So on this case the 95% confidence interval would be given by (4.95;4.99)
Answer:
The correct estimate of the amount generated to the local economy is $3,333,333.
Step-by-step explanation:
The amount the expected to be generated for the local economy = $3.3 million
The amount of salaries that will generate $3.3 million = $1 million
The percentage of the amount of the salaries and the subsequent earnings expected to be spent on the local community = 70%
Therefore, we have;
For a first amount of 1 million into the economy, the next amount to into the economy is 70/100 × 1 million = 700,000, then we have 70/100 × 700,000 and so on, which is a geometric sequence, with first term, a = $1 million, the common ratio, r = 70/100 = 0.7, the number of terms = Infinity = ∞
The sum of a geometric sequence to infinity is given as follows;
Substituting the known values gives;
Therefore, the correct estimate of the amount generated to the local economy by the $1 million salaries that will be paid = $3,333,333..