Long-distance calling plan A offers flat-rate service at 10 cents per minute. Calling plan B charges 99 cents for every call under 20 minutes; for calls over 20 minutes, the charge is 99 cents for the first 20 minutes plus 10 cents for every additional minute. (Note that these plans measure your call duration exactly, without rounding to the next minute or even second. ) If your long-distance calls have exponential distribution with expected value τ minutes, which plan offers a lower expected cost per call?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter10: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 442RE: Jerome invests $18,000 at age 17. He hopes the investments will be worth $30,000 when he turns 26....
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Long-distance calling plan A offers flat-rate service at 10 cents per minute. Calling plan B charges 99 cents for every call under 20 minutes; for calls over 20 minutes, the charge is 99 cents for the first 20 minutes plus 10 cents for every additional minute. (Note that these plans measure your call duration exactly, without rounding to the next minute or even second. ) If your long-distance calls have exponential distribution with expected value τ minutes, which plan offers a lower expected cost per call?
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