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 $10,000 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $10,000 and $15,000.
(a) Suppose you bid $12,000. What is the probability that your bid will be accepted? If required, round your answer to two decimal places.
(b) Suppose you bid $14,000. What is the probability that your bid will be accepted? If required, round your answer to two decimal places.
(c) What amount should you bid to maximize the probability that you get the property?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your 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 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Why would the US government sell government securities to private individuals and organizations? A to reduce the money supply and raise interest rates B to increase the money supply and lower interest rates C to reduce the money supply and raise the
Answers (1)
Name a product for which all eight marketing functions do not need to be performed by someone somewhere in the marketing system. Explain your thinking about what functions do not need to be performed
Answers (1)
During 2017 Sheridan Company had sales on account of $701000, cash sales of $316000, and collections on account of $520000. In addition, they collected $8300 which had been written off as uncollectible in 2016.
Answers (1)
The percentage change in the price level from one time period to the next
Answers (2)
The jones' have always admired a house that sits on the top of a hill owned by the smiths. martin is a mutual friend of both the jones and the smiths. one day, martin mentions to the smiths how much the jones would love to buy the smith home.
Answers (2)
New Questions in Business
George failed to pay $5,000 of income tax due with the filing of his return, which was timely filed on April 15th. He waits until June 10th after April 15th to pay the tax. How much will his penalties be?
Answers (1)
On November 1, 2019, Juno, Inc. declared a dividend of $3.00 per share on common stock. Juno, Inc. has 10,000 shares of common stock outstanding and 20,000 shares of preferred stock.
Answers (1)
Fallon Corporation reports net income of $370,000. Accounts Receivable balances at the beginning and end of the year were $40,000 and $48,000, respectively. Beginning and ending Inventory balances were $60,000 and $54,000, respectively.
Answers (1)
An asset was purchased for $60,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000.
Answers (2)
Which of the following is true? A. Both microeconomics and macroeconomics deal with same economic issues of inflation, unemployment and growth. B.
Answers (1)