Determine the optimal strategy for the breeder, Advanced Statistics

Consider a decision faced by a cattle breeder. The breeder must decide how many cattle he should sell in the market each year and how many he should retain for breeding purposes. Suppose the breeder starts with a herd of 200 cattle.  If he breeds cattle, he obtains 1.4 times as many cattle per year as he started with. The cost of breeding is $30 for each head of cattle not sold.  Breeding takes one year, and the $30 cost includes all expenses of maintaining an animal and its offspring.  Alternatively, the breeder may sell cattle in the market, at a price which depends on how many cattle he sells. If Y represents the number of cattle which are sold in a given year, then the Price, P, is given by the following equation:

       P = 200 - 0.2Y,        0 ≤Y ≤ 1,000

Start at the end of the actual decision process and represent the size of the herd in year 10 as x10. The herd is to be sold at $150 per head at the beginning of year 10 and consider f10(x10) = 150 x10.

Assume that the breeder plans to sell his entire herd at the beginning of 10 years from now and retire.  Determine the optimal strategy (of breeding and selling in the market place) for the breeder over the next ten years using dynamic programming, so that his profits are maximised at the time of retirement.

Posted Date: 3/19/2013 3:52:51 AM | Location : United States

Related Discussions:- Determine the optimal strategy for the breeder, Assignment Help, Ask Question on Determine the optimal strategy for the breeder, Get Answer, Expert's Help, Determine the optimal strategy for the breeder Discussions

Write discussion on Determine the optimal strategy for the breeder
Your posts are moderated
Related Questions
We are installing a router for our network. We believe that the time between the arrival of packets will be exponentially distributed with parameter R = 2 packets/second, and th

Zero-inflated Poisson regression is  the model for count data with the excess zeros. It supposes that with probability p the only possible observation is 0 and with the probabilit

An approach of using the likelihood as the basis of estimation without the requirement to specify a parametric family for data. Empirical likelihood can be viewed as the example of

Contour plot : A topographical map drawn from data comprising observations on the three variables. One variable is represented on horizontal axis and the second variable is represe

how to get the proportional allocation of the give stratified random sampling example

A standard IQ test has a mean of 98 and a standard deviation of 16. We want to be 99% certain that we are within 8 IQ points of the true mean. Determine the sample size

Clinical vs. statistical significance : The distinction among results in terms of their possible clinical importance rather than simply in terms of their statistical importance. Wi

Difference between tretment design and experimental design

Software which started out as the spreadsheet targeting at manipulating the tables of number for financial analysis, which has now developed into a more flexible package for workin

Probit analysis  is the technique most commonly employed in the bioassay, specifically toxicological experiments where the group of animals is subjected to known levels of a toxin