Question A and B are two contractors independently bidding on a job. The contract will go to the lowest bidder. Contractor A submits a random bid X~Uniform(0,1) while contractor B submits a random bid Y with a probability density fy(y) = 2y for 0 < y < 1 and fy(y) = 0 otherwise.
a) What is the joint density of Xand Y?
b) Find the probability contractor A is awarded the iob.
c) Find the expected value of the winning bid.