The Department of Transportation (DOT) monitors sealed bids for new road construction. For new access roads in a certain state, let low bid (thousands of dollars) and let estimate of fair cost of building the road (thousands of dollars). The joint probability density of X and Y is f(x,y)= e^-y/10/10y 0< y

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Complete Question

The complete question is shown on the first and second uploaded image

Answer:

The  marginal density function of Y is  [tex]f(y)= \frac{e^{\frac{-y}{10} }}{10}[/tex]

The distribution is exponential distribution

and the expected value is[tex]E[Y] = 10[/tex]

Step-by-step explanation:

From the question we are told that the function is  

       [tex]f(x,y) = \frac{e^{-\frac{y}{10} }}{10y} \ \ \ 0< y <x<2y[/tex]

Now the marginal density function of Y i.e f(y) is mathematically evaluated by obtaining the probability density function of y as follows

           [tex]= \int\limits^{2y}_{y} { \frac{e^{\frac{-y}{10} }}{10y} } \, dx[/tex]

            [tex]= \frac{e^{\frac{-y}{10} }}{10y} * (2y - y )[/tex]

          [tex]= \frac{e^{\frac{-y}{10} }}{10}[/tex]

The distribution of the function above is exponential distribution with a rate parameter equals to  

            [tex]\lambda = \frac{1}{10}[/tex]

  The mean DOT estimate E{Y} is mathematically evaluated as

           [tex]E[Y] = \frac{1}{\lambda}[/tex]

    substituting value

            [tex]E[Y] = \frac{1}{\frac{1}{10} }[/tex]

             [tex]E[Y] =10[/tex]

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