Question

Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $9,600 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $9,600 and $15,100. a.Suppose you bid $12,000. What is the probability that your bid will be accepted (to 2 decimals)? b.Suppose you bid $14,000. What is the probability that your bid will be accepted (to 2 decimals)? c.What amount should you bid to maximize the probability that you get the property? $ d.Suppose that you know someone is willing to pay you $16,000 for the property. You are considering bidding the amount shown in part (c) but a friend suggests you bid $12,800. If your objective is to maximize the expected profit, what is your bid? - Select your answer -Stay with your bid in part (c); it maximizes expected profitBid $12800 to maximize the expected profit What is the expected profit for this bid (to 2 decimals)? $

Answer 1

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So, 2405300 000 -

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