Business, 02.09.2021 23:00 ayoismeisalex
Consider the planning of undergraduate education for all three kids that a young couple plans to have. The costs depend on the number of kids that go to college (X) and the number of years each takes to complete the degree (Y). We denote the cost by C. Thus
C= g(X, Y)
Suppose the joint probability mass function of X, and Y for the planning couple is as follows:
x/y 3 4 5
1 0.05 0.05 0
2 0.07 0.3 0.03
3 0 0.4 0.1
Suppose the cost function is (in tens of thousands)
C = g(X, Y) = 10X + 20Y
What is the expected cost C?
Answers: 3
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Consider the planning of undergraduate education for all three kids that a young couple plans to hav...
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