Question: $ 4 . 4 # 6 3 . A consumer is trying to decide between two long - distance calling plans. The first one charges

 $4.4 #63. A consumer is trying to decide between two long-distance
$4.4 #63. A consumer is trying to decide between two long-distance calling plans. The first one
charges a flat rate of 10c per minute, whereas the second charges a flat rate of 99c for calls up
to 20 minutes in duration and then 10c for each additional minute exceeding 20(assume that
calls lasting a non-integer number of minutes are charged proportionately to a whole-minute's
charge). Suppose the consumer's distribution of call duration is exponential with parameter .
Write out the cost formula for each plan as a function of call duration x, and compute the
expected cost (as a function of parameter ) respectively (cost=f(x), so E[cost]=E[f(x)], which
is a function of lambda).
cost of plan I (as a function of x)=
cost of plan II =
E[cost of plan I]=
E[cost of plan II]=
calling plans. The first one charges a flat rate of 10c per

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