Suppose we are interested in bidding on a piece of land and we know one other...

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? (in dollars)?

d. What is the expected profit for this bid (in dollars)?

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Expert Solution

orchestra answered 1 year ago

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