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

Describe jonckheere terpstra test, Jonckheere Terpstra test  is the test fo...

Jonckheere Terpstra test  is the test for detecting particular types of departures from the independence in a contingency table in which both the row and column categories contain

Finite mixture distribution, The probability distribution which is a linear...

The probability distribution which is a linear function of the number of component probability distributions. This type of distributions is used to model the populations thought to

Tree, Tree is the term from the branch of the mathematics which known as t...

Tree is the term from the branch of the mathematics which known as the graph theory, used to describe any set of the straight-line segments joining the pairs of points in some pro

Curvature measures, The diagnostic tools or devices used to approach the cl...

The diagnostic tools or devices used to approach the closeness to the linearity of the non-linear model. They calculate the deviation of so-called expectation surface from the plan

Computer-intensive methods, Computer-intensive methods : The statistical me...

Computer-intensive methods : The statistical methods which require almost identical computations on the data repeated number of times. The term computer intensive is, certainly, a

Computer-assisted interviews, Computer-assisted interviews : A method or te...

Computer-assisted interviews : A method or technique of interviewing subjects in which the interviewer reads the question from the computer screen instead of the printed page, and

Factor, The term used in a variety of methods in statistics, but mostly to ...

The term used in a variety of methods in statistics, but mostly to refer to the categorical variable, with a less number of levels, under examination in an experiment as a possible

Goodmanand kruskal measures of association, Goodmanand kruskal measures of ...

Goodmanand kruskal measures of association is the measures of associations which are useful in the situation where two categorical variables cannot be supposed to be derived from

Mareg, MAREG is the software package for the analysis of the marginal regr...

MAREG is the software package for the analysis of the marginal regression models. The package permits the application of generalized estimating equations and the maximum likelihoo

Historigram, difference between histogram and historigram

difference between histogram and historigram

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