Probabilistic linear programing techniques and Bayesian statistics are combined in this paper by utilizing an example from the area of irrigated agriculture and water supply forecasts to assess the value of increased forecast accuracy to decision units. The case studied was confined to a two‐period analysis involving (1) a crop planting period and (2) a growing and harvesting period. The model is developed in terms of Bayesian analysis and demonstrates how linear programing can be applied to rather complex decision making problems involving uncertainty. Testing of the model involved the use of an IBM computer program available at the University of Michigan. For various assumptions as to supplemental water supply the model showed a net benefit to irrigators of about $6/acre for a reduction in uncertainty of 33% resulting from the introduction and improvement of water supply forecasts.
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