Hi! I've got this problem:
The weekly repair cost Y for a machine has pdf given by:
and 0 elsewhere
w. measurements in hundreds of dollars. How much money should be budgeted each week for repair cost so that the actual cost will exceed the budgeted amount only 10% of the time?
The problem is that I don't know where to start. Should I calculate
P (budgeted cost < actual cost) = .10? I don't understand how I should think and what I need to calculate. I've calculated E(Y) and that's = 1/4, but I don't know what I should use it for. Can anyone guide me in the right direction?
Thankful for any help and suggestions.