1.Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $10,500 will be accepted. Assume that the competitor'sbidxisa random variable that is uniformly distributed between $10,500 and $15,200.

a.Suppose you bid $12,000. What is the probability that your bid will be accepted (to 2 decimals)?

b.Suppose you bid $14,000. What is the probability that your bid will be accepted (to 2 decimals)?

c.What amount should you bid to maximize the probability that you get the property (in dollars)?

1. d.Supposethatyouknowsomeoneiswillingtopayyou$16,000fortheproperty.Youareconsideringbiddingtheamountshowninpart(c)butafriendsuggestsyoubid$13,250.Ifyourobjectiveistomaximizetheexpectedprofit,whatisyourbid?
2. Whatistheexpectedprofitforthisbid(indollars)?

2.(just one question)The Consumer Reports National Research Center conducted a telephone survey of 2,000 adults to learn about the major economic concerns for the future. The survey results showed that 1,740 of the respondents think the future health of Social Security is a major economic concern.

If computing the confidence intervals manually, make sure to use at least three decimal digits for the critical values.

a. What is the point estimate of the population proportion of adults who think the future health of Social Security is a major economic concern? point estimate=1740/2000=0.87

b. At 90% confidence, what is the margin of error (to 4 decimals)?