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( e) . 18.3 See Problems 18.2-18.5.) First Fiddler's Bank has foreclosed on a home mortgage and is selling the house at auction. There are
( e) . 18.3 See Problems 18.2-18.5.) First Fiddler's Bank has foreclosed on a home mortgage and is selling the house at auction. There are three bidders for the house, Jesse, Sheila, and Elsie. First Fiddler's does not know the willingness to pay of any of these bidders but on the basis of its previous experience believes that each of them has a probability of 1/3 of valuing the house at $700,000, a probability of 1/3 of valuing it at $500,000, and a probability of 1/3 of valuing it at $200,000. First Fiddlers believes that these probabilities are independent between buyers. If First Fiddler's sells the house by means of a second-bidder sealed-bid auction (Vickrey auction), what will be the bank's expected revenue from the sale? (Choose the closest answer.) bloand live togides and fewstrictise (a) $500,000 (6) $474,074 (c) $466,667 10 biyy dos, to foods wa sifatall To abort I mortals (5) boudinmoosh vimobust at di elpa (d) $666,667 008, 18 andi Proar . Hitalle tol sbuilt (by (e) $266,667 seordo to shout
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