Two-Stage Recourse Value

Problem

Compute the expected second-stage recourse cost.

For each scenario with shortage scenario - x (floored at 0), the recourse buys the shortfall at unit cost. Return sum over scenarios of probs[k] * cost * max(0, scenarios[k] - x).

Hint

Only scenarios above the first-stage decision incur recourse.

Test cases

case 1

in: [5,[4,8],[0.5,0.5],2]

expected: 3

case 2

in: [10,[5,10],[0.5,0.5],1]

expected: 0

case 3

in: [0,[3],[1],4]

expected: 12

Starter codePython

def two_stage_recourse(x, scenarios, probs, cost):
    # Your code here
    pass

3 test cases · run your code against them in the editor