Suppose we are interested in bidding on a piece of land. one other bidder is interested. The seller announced that the highest bid in excess of $9,600 will be accepted. Assume that the competitor's bid is a random variable that is uniformly distributed between $9,600 and $14,600. 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 $12,800. Which bid will give you the larger expected profit? - Select your answer - What is the expected profit for this bid (to 2 decimals)?
