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I would like to sell my used car to the highest bidder. Studying the market, I have concluded that I am likely to receive four
I would like to sell my used car to the highest bidder. Studying the market, I have concluded
that I am likely to receive four types of offers with equal probabilities: very low at about
$1050, low at about $1900, medium at about $2500, and high at about $3000. I decided to
advertise the car for up to 3 consecutive days. At the end of each day, I would decide whether
or not to accept the best offer made that day. What should be my optimal strategy regarding
the acceptance of an offer?
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