*22. The lifetime of a car has a distribution H and probability density h . Ms. Jones buys a new car as soon as her old car either breaks down or reaches the age of T years. A new car costs C 1...


*22. The lifetime of a car has a distributionHand probability densityh. Ms. Jones buys


a new car as soon as her old car either breaks down or reaches the age ofT
years. A


new car costsC1 dollars and an additional cost ofC2 dollars is incurred whenever a


car breaks down. Assuming that aT-year-old car in working order has an expected


resale valueR
(
T
), what is Ms. Jones’ long-run average cost?



May 08, 2022
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