The Effect Of Rounding On The Probability Distribution Of Regrading In The U.S. Peanut Industry
AbstractThis article determines the effect of rounding (pointing-off) of grade percentages to the nearest whole number on the probability distribution of regrading in the peanut industry. Results show that rounding causes graders to have to regrade an extra 4% of samples even when they follow all directions and make no mistakes. When rounding was not used, the sample weight had little effect on the probability of regrading. With rounding, the probability of regrading was reduced by beginning with a larger than 500-gram sample. Thus, rounding provides an incentive to take overweight samples in order to avoid regrading. Overweight samples can overestimate the value of peanuts. A low-cost way to improve peanut grading accuracy would be to round to tenths rather than whole numbers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.
Volume (Year): 20 (2002)
Issue (Month): 1 ()
grading; normal-jump distribution; peanuts; regrading; rounding; Crop Production/Industries;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kyle Stiegert & B. Wade Brorsen, 1996. "The distribution of futures prices: diffusion-jump versus generalized beta-2," Applied Economics Letters, Taylor & Francis Journals, vol. 3(5), pages 303-305.
- Akgiray, Vedat & Booth, Geoffrey, 1986. "Stock Price Processes with Discontinuous Time Paths: An Empirical Examination," The Financial Review, Eastern Finance Association, vol. 21(2), pages 163-84, May.
- Marcoul, Philippe & Lawrence, John D. & Hueth, Brent, 2006.
"Grader Bias In Cattle Markets? Evidence From Iowa,"
2006 Annual meeting, July 23-26, Long Beach, CA
21123, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Brent Hueth & John D. Lawrence & Philippe Marcoul, 2004. "Grader Bias in Cattle Markets? Evidence from Iowa," Center for Agricultural and Rural Development (CARD) Publications 04-wp355, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Hueth, Brent & Marcoul, Philippe & Lawrence, John D., 2007. "Grader Bias in Cattle Markets? Evidence from Iowa," Staff General Research Papers 11465, Iowa State University, Department of Economics.
- Hatchett, Robert B. & Brorsen, B. Wade & Anderson, Kim B., 2009.
"Optimal Length of Moving Average to Forecast Futures Basis,"
2009 Conference, April 20-21, 2009, St. Louis, Missouri
53048, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
- Hatchett, Robert B. & Brorsen, B. Wade & Anderson, Kim B., 2010. "Optimal Length of Moving Average to Forecast Futures Basis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(1), April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.