Problem

Let X1, X2, . . . , Xn be random variables denoting n independent bids for an item that...

Let X1, X2, . . . , Xn be random variables denoting n independent bids for an item that is for sale. Suppose each Xi is uniformly distributed on the interval [100, 200]. If the seller sells to the highest bidder, how much can he expect to earn on the sale? [Hint: Let Y = max(X1, X2, . . . , Xn). First find FY(y) by noting that Y y iff each Xi is ≤ y. Then obtain the pdf and E(Y).]

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