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 $15,000 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $15,000 and $20,000. (c) What amount should you bid in dollars to maximize the probability that you get the property?$ 20000(d) Suppose you know someone who is willing to pay you $21,000 for the property.What is the expected profit in dollars if you bid the amount given in part (c)?$Find a bid in dollars which produces a greater expected profit than bidding the amount given in part (c). (If an answerdoes not exist, enter DNE.)$Would you consider bidding less than the amount in part (c)? Why or why not?O Yes. There is a bid which gives a greater expected profit than the bid given in part (c), and thus a higherexpected profit is possible with a bid smaller than the amount in part (c).O No. The bid which maximizes the expected profit is the amount given in part (c), thus it does not make senseto place a smaller bid.

Name: Suppose we are interested in bidding on a piece of land and we know on
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: 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 $15,000 will be accepted. Assume that the competitor's bid x is a random variable that is unifo