Problem 4E

The amount of flour used per day by a bakery is a random variable Y that has an exponential distribution with mean equal to 4 tons. The cost of the flour is proportional to U = 3Y + 1.

a Find the probability density function for U .

b Use the answer in part (a) to find E(U ).

Solution:

Step 1 of 3:

It is given that Y is a random variable and it denotes the amount o0f flour used by a bakery per day.

Y has the Exponential distribution with mean 4 tones.

Also, it is given that the total cost is expressed as U=3Y+1.

Using this we have to find the required answers.