Determine the optimal strategy for the breeder, Advanced Statistics

Assignment Help:

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.


Related Discussions:- Determine the optimal strategy for the breeder

Classification matrix, Classification matrix: A term many times used in di...

Classification matrix: A term many times used in discriminant analysis for the matrix summarizing the results and outputs obtained from the derived classi?cation rule, and obtaine

Explain laplace distribution, Laplace distribution : The probability distri...

Laplace distribution : The probability distribution, f(x), given by the following formula   Can be derived as the distribution of the difference of two independent random var

Evaluate the statistical arguments, Evaluate the following statistical argu...

Evaluate the following statistical arguments. Begin by identifying the sample, population, and the property which is being investigated. Do these arguments sound acceptable? Would

Infant mortality rate, Infant mortality rate is the ratio of the number of...

Infant mortality rate is the ratio of the number of deaths during the calendar year among the infants under one year of age to the total number of live births during that particul

Describe item-total correlation, Item-total correlation is an  extensively...

Item-total correlation is an  extensively used method for checking the homogeneity of the scale made up of number of items. It is simply the Pearson's product moment correlation c

1, In a mathematics examination the average grade was 82 and the standard d...

In a mathematics examination the average grade was 82 and the standard deviation was 5. all students with grade from 88 to 94 received grade of B. if the grade are approximately no

Attack rate, Attack rate : This term frequently used for the incidence of t...

Attack rate : This term frequently used for the incidence of the disease or condition in the particular group, or during a limited interval of time, or under the special circumstan

QUANTITATIVE METHOD., an oil company is considering whether or not to bid f...

an oil company is considering whether or not to bid for an offshore drilling contract. The bid would cost $60 with a 65% chance of gaining the contract. Outcome success Probability

Banach''s match-box problem, Banach's match-box problem : The person carrie...

Banach's match-box problem : The person carries two boxes of matches, one in his left and one in his right pocket. At first they comprise N number of matches each. When the person

Multilevel models, Multilevel models are the regression models for the mul...

Multilevel models are the regression models for the multilevel or clustered data where units i are nested in the clusters j, for example a cross-sectional study where students are

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd