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ProblemlA Sho Inc. 0367 Clark and his team are evaluating the risks in the Request for Proposal (RFP). The case states that The team's consensus

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ProblemlA Sho Inc. 0367 Clark and his team are evaluating the risks in the Request for Proposal (RFP). The case states that \"The team's consensus estimate of Appshop's chances of winning the RFP at the $150,000 bid was 45 percen .\" Clark and his team perform more research and estimate the winning probability associated with their bid (monthly) in the following table: Bid (Monthly) Winning Probability $120,000 90% $135,000 65% $150,000 45% $160,000 3 0% $170,000 10% a) How much should Clark and his team bid to maximize their expected return in their RFP? b) Based on your answer in a), which option should Clark and his team choose (xed payment, bonus plan, RFP bid with revenue sharing), and why? Use @Risk and a sample size of 1000 for your simulation. Note that this case is available on the portal, under Day 3 Content

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