Suppose you are bidding for an oil well that you believe will yield $40 million (including the
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Suppose you are bidding for an oil well that you believe will yield $40 million (including the cost of developing and mining the oil) in profits. Three competitors are bidding against you, and each competitor’s bid is assumed to follow a normal random variable, with a mean of $30 million and a standard deviation of $4 million. What should you bid (within $1 million)?
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Microsoft Excel Data Analysis And Business Modeling
ISBN: 9780137613663
7th Edition
Authors: Wayne Winston
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