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

Define least significant difference test, Least significant difference test...

Least significant difference test is an approach to comparing a set of means which controls the family wise error rate at some specific level, let's assume it to be α. The hypothe

Evidence-based medicine (ebm), Described by the leading proponent as 'the c...

Described by the leading proponent as 'the conscientious, explicit, and judicious uses of present best evidence in making the decisions about the care of individual patients, and

Tracking, Tracking is the term sometimes used in the discussions of data f...

Tracking is the term sometimes used in the discussions of data from the longitudinal study, to describe the ability to predict the subsequent observations from previous values. In

Bartlett''s test for variances, Bartlett's test for variances : A test for ...

Bartlett's test for variances : A test for equality of the variances of the number (k)of the populations. The test statistic can be given as follows   where s square is an

Principal components analysis, Principal components analysis is a process ...

Principal components analysis is a process for analysing multivariate data which transforms original variables into the new ones which are uncorrelated and account for decreasing

Find distribution - expected value and variance, We are installing a router...

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

Back-projection, Back-projection: A term most often applied to the procedu...

Back-projection: A term most often applied to the procedure for reconstructing plausible HIV incidence curves from the AIDS incidence data. The method or technique assumes that th

Growth curve analysis, Growth curve analysis is t he general term for metho...

Growth curve analysis is t he general term for methods dealing with development of the individuals over time. A classic instance includes recordings made on a group of children, sa

Probability, show all the ways in which 3 games of football can be conclude...

show all the ways in which 3 games of football can be concluded(it can be a win W,a loss L,or a draw X)

Extrapolation, This process of estimating from a data set those values lyin...

This process of estimating from a data set those values lying beyond range of the data. In the regression analysis, for instance, a value of the response variable might be estimate

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