Recall the Land Shark example within the chapter a Use ASP to apply simulation optimization to determine Land Sharks bid amount that would maximize its expected return on the upcoming auction b What is Land Sharks probability of winning the auction at the bid amount from part a ...

a A bid amount of about 1250100 maximizes the expected return on the auction to a val ...

Recall the Land Shark example within the chapter. a. Use ASP to apply simulation optimization to determine

Question:

Recall the Land Shark example within the chapter.
a. Use ASP to apply simulation optimization to determine Land Shark’s bid amount that would maximize its on the upcoming auction.
b. What is Land Shark’s probability of winning the auction at the bid amount from part a?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...