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)? .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? $ $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? Bid $13150 to maximize the expected profit What is the expected profit for this bid (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 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)? .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? $ $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? Bid $13150 to maximize the expected profit What is the expected profit for this bid (to 2 decimals)?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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![Exercise 06.07 Algo (Uniform Probability Distribution)
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)?
.74
◄ Question 3 of 16 ►
.34
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?
Hint(s) Check My Work
Bid $13150 to maximize the expected profit
What is the expected profit for this bid (to 2 decimals)?
$ $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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff752b348-e74c-4674-b8f4-e1fbecb87f5d%2F0613ab6c-9b54-49d6-a806-f0be4589a93b%2F27snjx_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 06.07 Algo (Uniform Probability Distribution)
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)?
.74
◄ Question 3 of 16 ►
.34
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?
Hint(s) Check My Work
Bid $13150 to maximize the expected profit
What is the expected profit for this bid (to 2 decimals)?
$ $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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