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Example: Gasoline is to be stocked in a bulk tank once at the beginning of each week and then sold to individual customers. Let Y, denote the proportion of the capacity of the bulk tank that is available after the tank is stocked at the beginning of the week. Because of the limited supplies, Y1 varies from week to week. Let Y2 denote the proportion of the capacity of the bulk tank that is sold during the week. Because Y, and Y2 are both proportions, both variables are between 0 and 1. Further, the amount sold, y2, cannot exceed the amount available, y1 Suppose the joint density function for Y, and Y2 is given by

Determine cov(Y1, Y2):

Determine the mean and variance of aTy, where a = (1,1) and y (, y,)T 1 12

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