5 Alden Construction is bidding against Forbes Construction for a project. Alden believes that Forbes’s bid is a random variable B with the following mass function: P(B 

$6,000)  .40, P(B  $8,000)  .30, P(B  $11,000)  .30.

It will cost Alden $6,000 to complete the project. Use each of the decision criteria of this section to determine Alden’s bid.

Assume that in case of a tie, Alden wins the bidding.

(Hint: Let p  Alden’s bid. For p  6,000, 6,000 p  8,000, 8,000 p  11,000, and p  11,000, determine Alden’s profit in terms of Alden’s bid and Forbes’s bid.)