Modelling biological production

#1
I want to make a covariance matrix for a grain farm growing 3 different crops.

The crops each have a yield risk, a price risk and a quality risk.

Both the yield risk and price risk are normally distributed and I have enough data to work out the profit per hectare for each crop and associated std.

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Now, this is what I struggle with. The quality risk says that for crop A, only 6 years out of 10, the quality demands are met. (If not met there is a 10% price penalty.)

The quality risk follows the bernoulli distribution, it either meets the requirement or it doesn't [0,1].


How do I add the bernoulli distributed quality risk to the normally distributed price and yield risk?
 

Dason

Ambassador to the humans
#2
What do you mean by "add the bernoulli distributed quality risk to the normally distributed price and yield risk"