Return to the situation where you bid onone plot(plot #1) and there is onlyone other bidder, whose bid X is a uniform random variable from 10 to 30.Let B represent your bid for plot #1.B isnota random variable.

(Ignore plot #2.Assume your decisions with respect to plot #2 do not affect this question.)

You will bid B for plot #1.If you win the auction, your cost of acquiring plot #1 is B.If you donotwin the auction, you will buy plot #1 from theother buyerfor X + 5.(You'll pay the other buyer whattheypaid in the auction, plus an extra 5).Assume the other buyer will accept this offer, and therefore you will end up owning plot #1, whether or not you win the auction.

1. If you bid 10 (B = 10), what is the expected amount you will pay for plot #1?One decimal
2. What is the expected amount you will pay if you bid 30?
3. What is the expected amount you will pay if you bid 20?