Question: Please help me with the question, and show the work and explanation. thank you E. In a recent election campaign. one of the major political

 Please help me with the question, and show the work and

Please help me with the question, and show the work and explanation. thank you

explanation. thank you E. In a recent election campaign. one of the

E. In a recent election campaign. one of the major political parties recently announced a policy to charge commercial users for the water they use. Two different tariffs are proposed: one for high water users {eg. dairy farmers] and one lower water users {eg companies bottling water]. Suppose thattbe tariffswill comprise ofadailyxed cost and aperunit charge andcanbe represented as followsE: Calf. w} = f+l12w can. to] = o.3r+o.5 w ones\";2 where t represents time [measured in days} and w represents water usage in cubic metres. for w 5 SD. A particular farmer is tryingto decide which tariff to use. The weekly [i.e. T days] water usage for this farmer can be modelled byan exponential random variable W, with density f{ w} = Die\"'2'". Total for Question 5: 13 moth [a] Find the expected value and variance for W. [3 mrb [b] Find the expected value and variance of the weekly cost ofwater under tariff A. [3 math} [c] Find the expected value of the weekly cost of water under tariff B. [3 With?) [d] Which tariffwould you reconunend that the farmer? Justifyyour answer. Refer to your answers [4 With?) above and other relevant analysis. For full marks you must conduct some analysis beyond that which you have already undertaken in parts {chj. [e] Find the variance of the weekly cost ofwater under tariff B. [4 [bonus]}

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!