Consider a two-stage stochastic problem with a single first-stage decision variable x and

Q(x, ) = min{2y1 + y2|y1 x , y2 x, y 0, integer}

with = 1 or 2 with probability of 1/2 each. Show:

(b) If x is continuous, then EV = WS for 0 c 1 and EV > WS for c > 1 .

Beware that y is always integer; the discussion here concerns the effect of x 's being integer or not.