You want to buy electric energy. You can buy from company A, B, C, or D, but you must choose only one. You obtain past data on these four suppliers, and you then determine that the prices for some of them have been quite volatile, influenced by the state of the economy (recession, stagnation, and inflation). You assess this data given in the table below. Assuming that you simply want to minimize your average costs over the long run, determine the expected costs for all energy suppliers. Select the supplier based on minimum expected cost.
You want to buy electric energy. You can buy from company A, B, C, or D, but you must choose only one. You obtain past data on these four suppliers, and you then determine that the prices for some of them have been quite volatile, influenced by the state of the economy (recession, stagnation, and inflation). You assess this data given in the table below. Assuming that you simply want to minimize your average costs over the long run, determine the expected costs for all energy suppliers. Select the supplier based on minimum expected cost.
Power System Analysis and Design (MindTap Course List)
6th Edition
ISBN:9781305632134
Author:J. Duncan Glover, Thomas Overbye, Mulukutla S. Sarma
Publisher:J. Duncan Glover, Thomas Overbye, Mulukutla S. Sarma
Chapter3: Power Transformers
Section: Chapter Questions
Problem 3.8MCQ: The units of admittance, conductance, and susceptance are siemens. (a) True (b) False
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Question
You want to buy electric energy. You can buy from company A, B, C, or D,
but you must choose only one. You obtain past data on these four suppliers, and you then determine
that the prices for some of them have been quite volatile, influenced by the state of the economy
(recession, stagnation, and inflation). You assess this data given in the table below.
Assuming that you simply want to minimize your average costs over the long run, determine the
expected costs for all energy suppliers. Select the supplier based on minimum expected cost.
Transcribed Image Text:Costs (S/MW-hr)
Е (сost)
Recession Stagnation Inflation (pls. fill in) | (pls. fill in)
40
Energy seller
A
60
80
B
20
30
81
C
30
40
51
D
50
50
50
Probability of economic state
0.15
0.35
0.5
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