Question: It is uncertain as to what a competitor will bid on an upcoming contract to supply parts to Boeing. The bid is almost certain to

It is uncertain as to what a competitor will bid on an upcoming contract to supply parts to Boeing. The bid is almost certain to be between $250,000 and $300,000.

a. Write the probability function, f(x), for this random variable. Is it a pmf or a pdf?

b. What are the average and standard deviation? What is the managerial interpretation of these?

c. What is the probability that the competitor’s bid will be less than $280,000?

d. What is the probability of a winning the bid if you bid $255,000?

e. Suppose your cost to fulfill the contract if you win is $245,000. What is the optimum bid?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Business Analytics Data Questions!

Post-mortem of the first phase: How should a vision be communicated? This case presents two phases of a large business transformation project involving the implementation of an ERP system with the...

Post-mortem of the first phase: How was the project team managed and is the project teams pace sustainable in the longer run? BOMBARDIER CASE STUDY IS IN MY PREVIOUS QUESTION This case presents two...

How can we assess whether a project is a success or a failure? This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of...

Post-mortem of the first phase: 4. How were the new roles defined, communicated, understood? This case presents two phases of a large business transformation project involving the implementation of...

Post-mortem of the second phase: What were the strong points in the second implementation process what areas needed improvements? This case presents two phases of a large business transformation...

Good morning Mr Shrugal, This Ed Callao. you told me to send my questions which I already did. Did you receive them by any chance. I am still on a trip and my deadline is tomorrow so I just want to...

Case 20 Lockheed Martin Jim Kelly, Eric Ryza, Mark Herman, Norbert Forlemu, Swetha Manimuthu Texas A&M University Lockheed Martin takes flight in times of crisis.1 Vividfour / Shutterstock.com...

1) What type of strategy is the Waterford Spinning Mills acquisition based on? What are the specific risks & benefits DCC faces as a result?Has it worked out as planed for DCC? 2) What business-level...

1. What strategic alternatives are identified in this case that relate to concepts of business- and corporate-level strategies, as well as ways to grow/diversity? How attractive are these...

Prepare adjusting entries for the following transactions. 1. Equipment depreciation is $900 for the accounting period. 2. There was no beginning supply balance and you purchased $500 of supplies...

What are the three factors that may account for the difference between the value of the company as a whole and the book value of the net assets?

Fixed - income bonds are least likely to be issued by

a. The United States Congress is well qualified to debate and set generally accepted accounting principles. Comment. b. Speculate on why these bills were directed to amend the Securities Exchange Act...