Answer.......

A given property is to be sold to the highest bidder. If you obtain the property, the selling price is V. Let the unknown maximum bid of your competitor be X with probability distribution f and cumulative distribution F. 1) Obtain EOL and draw the decision tree _ 2) Using part 1, show that EVPI = V E[X] (V-a'\") F( a\"), where a* is your optimal bid