2 3 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 $9,700 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $9,700 and $14,700. 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)? 4 5 0 3. 0 M 9. 10 11 0 c. What amount should you bid to maximize the probability that you get the property? d. Suppose that you know someone is willing to pay you $16,000 for the property. You are considering bidding the amount shown in part (c) but a friend suggests you bid $12,850, which bid will give you the larger expected profit? 12 Bid $12950 to maximize the expected profit 11 What is the expected profit for this bid (to 2 decimals)? 14 01 15