Consider an antique auction where bidders have independent private values. There are two bidders, each of whom perceives that valuations are uniformly distributed between $100 and $1,000. One of the bidders is Sue, who knows her own valuation is $200. What is Sue's optimal bidding strategy in a Dutch auction?Multiple ChoiceSubmit a bid of $150.Submit a bid of $200.Submit a bid that is less than $150.Yell "mine" when the bid reaches $150.

You are a hotel manager considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession, The potentlal payoffs and corresponding payoffs are summarized in the accompanying table. Which project has the highest variance