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Exercise 06.07 Algo (Uniform Probability Distribution) .34 b. Suppose you bid $14,000. What is the probability that your bid will be accepted (to 2 decimals)? .74 c. What amount should you bid to maximize the probability that you get the property? 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 $10,300 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $10,300 and $15,300. a. Suppose you bid $12,000. What is the probability that your bid will be accepted (to 2 decimals)? ◆ Question 3 of 16 ► Bid $13150 to maximize the expected profit What is the expected profit for this bid (to 2 decimals)? Hint(s) Check My Work $ $15,30 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 $13,150. Which bid will give you the larger expected profit? $

Exercise 06.07 Algo (Uniform Probability Distribution) .34 b. Suppose you bid $14,000. What is the probability that your bid will be accepted (to 2 decimals)? .74 c. What amount should you bid to maximize the probability that you get the property? 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 $10,300 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $10,300 and $15,300. a. Suppose you bid $12,000. What is the probability that your bid will be accepted (to 2 decimals)? ◆ Question 3 of 16 ► Bid $13150 to maximize the expected profit What is the expected profit for this bid (to 2 decimals)? Hint(s) Check My Work $ $15,30 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 $13,150. Which bid will give you the larger expected profit? $

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Part d please i was given the incorrect answer multiple times one of them is 1881

Exercise 06.07 Algo (Uniform Probability Distribution) .34 b. Suppose you bid $14,000. What is the probability that your bid will be accepted (to 2 decimals)? 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 $10,300 will be accepted. Assume that the competitor's bid ï is a random variable that is uniformly distributed between $10,300 and $15,300. a. Suppose you bid $12,000. What is the probability that your bid will be accepted (to 2 decimals)? .74 c. What amount should you bid to maximize the probability that you get the property? ◄ Question 3 of 16 ► Bid $13150 to maximize the expected profit What is the expected profit for this bid (to 2 decimals)? $ Hint(s) Check My Work $ $15,30 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 $13,150. Which bid will give you the larger expected profit?
Transcribed Image Text:Exercise 06.07 Algo (Uniform Probability Distribution) .34 b. Suppose you bid $14,000. What is the probability that your bid will be accepted (to 2 decimals)? 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 $10,300 will be accepted. Assume that the competitor's bid ï is a random variable that is uniformly distributed between $10,300 and $15,300. a. Suppose you bid $12,000. What is the probability that your bid will be accepted (to 2 decimals)? .74 c. What amount should you bid to maximize the probability that you get the property? ◄ Question 3 of 16 ► Bid $13150 to maximize the expected profit What is the expected profit for this bid (to 2 decimals)? $ Hint(s) Check My Work $ $15,30 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 $13,150. Which bid will give you the larger expected profit?
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