1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
iren [92.7K]
3 years ago
7

For example, the auctioneer has estimated that the likelihood that the second bidder will bid $2,000,000 is 90%. a) Use a decisi

on tree to determine the optimal decision strategy for which bid to accept. b) Draw a risk profile for the optimal decision.
Mathematics
1 answer:
fredd [130]3 years ago
6 0

Answer:

See explanation to get answer.

Step-by-step explanation:

Solution

As per the data and information given in the question, there are three Bidders, one each on Monday, Tuesday and Wednesday.

Bidder 1 may bid on Monday either for $2,000,000 or $3,000,000 with probabilities 0.5 each

Therefore expected pay-off for Bidder 1 is $2,500,000 (2,000,000*.52 + 3,000,000*.5)

Bidder 2 may bid on Tuesday either for $2,000,000 with probability 0.9 or $4,000,000 with probability 0.1

Therefore expected pay-off for Bidder 2 is $2,200,000 (2,000,000*.9 + 4,000,000*.1)

Bidder 3 may bid on Wednesday either for $1,000,000 with probability 0.7 or for $4,000,000 with probability 0.3

Therefore expected pay-off for Bidder 3 is $1,900,000 (1,000,000*.7 + 4,000,000*.3)

Based on the comparison of the above mentioned calculations for the expected pay-off for the bidders, it is recommended that the optimal decision strategy among the bidders is to go for Bidder 1 with highest expected pay-off of $2,500,000 and accept the bid of Bidder 1.

Risk profile for the optimal solution is $2,000,000 with probability 0.5 and $3,000,000 with probability 0.5

Bid may be for $4,000,000 with probability of 0.1 by Bidder 2 or with probability 0.3 by Bidder 3

You might be interested in
AREA OF CIRCLES HELP PLS​
Lera25 [3.4K]

Answer:

432 ft²

Step-by-step explanation:

First lets find radius (r);

r = d/2

r = 24/2

r = 12

Now let's find the area;

A = π(12)²

A = 3(144)

A = 432 ft²

Hope this helps!

6 0
3 years ago
6b. Create a table that shows the relationship between the amount of
goblinko [34]

Answer:

120 x W = M

Step-by-step explanation:

If she makes 120 per week working then the number of the week she has work multiplied by 120 is her total for whichever week

8 0
2 years ago
4 birlik + 9 binlik + 1 yüz binlik + 9 yüzlük ten oluşan sayı?​
ahrayia [7]

Answer:

sla

Step-by-step explanation:

slapohafdpdokrlotncpohaeefder

6 0
2 years ago
Please answer correctly
Phoenix [80]

Answer:

26

Step-by-step explanation:

18 - 2^4 * (-0.5)

Calculate 2 to the power of 4 and get 16.

18−16(−0.5)

Multiply 16 and −0.5 to get −8.

18−(−8)

The opposite of −8 is 8.

18+8

Add 18 and 8 to get 26.

26

8 0
2 years ago
Really need help on my correction if anyone know please help!!
Olin [163]
Answers: 
<u>Question 19:</u> 177 bpm
<u>Question 20:</u> 95˚F

Explanations:
<u>Question 19:</u>
You had the formula set up properly like this:
R =  \frac{885 \sqrt{25} }{25}  =  \frac{885(5)}{25}  =  \frac{4425}{25} 
This is where you went wrong - I don't know exactly what you did, but your division of 4425 ÷ 25 is wrong. You should have ended up with 177 which is the correct answer. 
<u>Question 20:</u>
You had the formula set up correctly again, and merely used the wrong sign when adding 32. 
F =  \frac{9(35)}{5} + 32 =  \frac{315}{5} + 32
This is where you went wrong. You subtracted 32 from 63 when you should have added it. (See red circle on your subtraction.)
63 + 32 = 95˚F
7 0
3 years ago
Other questions:
  • You guys listed "1" fraction of the two fractions between: 3/5 and 4/5? What is the other ones? Also, someone else said these an
    8·1 answer
  • List the fractors of 35 is this number prime or composite
    7·2 answers
  • Morty buys and sells computer parts he bought two monitors for $25 each and later sold them for 88 each he bought four cases for
    6·1 answer
  • PLEASE HELP ASAP!!! :)
    8·1 answer
  • Neil goes to the pet shop and selects a treat for his dog. He chooses one, returns it to the bunch, and the chooses another. Wha
    10·1 answer
  • What is the horizontal distance that your bridge must span to clear the ravine?
    5·2 answers
  • The fifth grande girl class has 120 students.girl make up 2/3 of the class how many girl are in the fifth grade class?
    12·2 answers
  • The question is on the picture
    14·1 answer
  • 11) Given: the function f defined by f(x) = 3x2 . Which statement is true?
    6·1 answer
  • The value v of your quarters in cents) is a function of n, the number of quarters you have.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!