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carlo123
carlo123
07.04.2020 • 
Mathematics

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 $10,200 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $10,200 and $15,000 .

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 $13,100. If your objective is to maximize the expected profit, what is your bid?

- Select your Stay with your bid in part (c); it maximizes expected profit or Bid $13,100 to maximize the expected profitItem

What is the expected profit for this bid (to 2 decimals)?

$

I need part D, and it isn't $1,752.08

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