3. Auctioning the Business After a long career as an entrepreneur, you have decided to sell your business and ret know that two businesspeople are interested in acquiring your firm. You know with that one of the buyers, Ma. A, has a willingness-to-pay of $200 million. You have less inf about the other prospective buyer, Mr. B, but you think that with probability 60% his $160m, with probability 20% it is $180m, and with probability 20% it is $220m. Note: Be careful in your calculations of expected values in these questions. You may refer to your notes from the Managerial Statistics clams. (#) (2 points) If you sell your business through a 2nd Price (Vickrey) auction, what expected revenue? Please explain how you arrived at your answer. (b) (3 points) Suppose that, with probability 10%, Ma. C is also interested and she to pay $2 billion for your company. Assume that the probability that Ma. C er auction 13 uncorrelated with Mr. B's WTP. How does this change your expected from the auction? Please be sure to explain why