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uppose 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 will be accepted. Assume that the competitor's bid is a random variable that is uniformly distributed between and . a. Suppose you bid . What is the probability that your bid will be accepted (to 2 decimals)

User Glenn Moss
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The required parameters are missing :

Probable question with parameters :

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?

Answer:

0.4

Explanation:

Competitor's bid = 10,000 to 15000

Take the interval as:

a = 15,000 ; b = 20,000

f(y) =1/ interval difference = 1/(20000-15000) = 1/5000 = 0.0002

With a bid of 17000:

P(x < 17000 = ∫f(y) dy

∫0.0002dy = (0.0002x) at x = 17000 to x = 15000

0.0002(17000) - 0.0002(15000)

3.4 - 3

= 0.4

You can plug in your variables, of the variables you have are different.

User Melodie
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