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 $9,700 will be accepted. Assume that the competitor's bid is a random variable that is uniformly distributed between $9,700 and $14,700. 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 $12,850. Which bid will give you the larger expected profit? - Select your answer - 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 $9,700 will be accepted. Assume that the competitor's bid is a random variable that is uniformly distributed between $9,700 and $14,700. 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 $12,850. Which bid will give you the larger expected profit? - Select your answer - What is the expected profit for this bid (to 2 decimals)? $
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.8: Probabilities Of Disjoint And Overlapping Events
Problem 2C
Related questions
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 $9,700 will be accepted. Assume
that the competitor's bid x is a random variable that is uniformly distributed between $9,700 and $14,700.
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 $12,850. Which
bid will give you the larger expected profit?
- Select your answer -
What is the expected profit for this bid (to 2 decimals)?
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8952a85a-85f1-4c32-8b45-c088a1def42e%2Fb0e99bd4-7870-4a47-84b6-6b3713be5a08%2Fjnw0hq_processed.png&w=3840&q=75)
Transcribed Image Text: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 $9,700 will be accepted. Assume
that the competitor's bid x is a random variable that is uniformly distributed between $9,700 and $14,700.
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 $12,850. Which
bid will give you the larger expected profit?
- Select your answer -
What is the expected profit for this bid (to 2 decimals)?
$
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