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Strassel Investors buys real estate, develops it , and resells it for a profit. A new property is available, and Bud Strassel, the president and
Strassel Investors buys real estate, develops it and resells it for a profit. A new property is available, and Bud Strassel, the president and owner of Strassel Investors, believes if he purchases and develops this property, it can then be sold for $ The current property owner has asked for bid: and stated that the property will be sold for the highest bid in excess of $ Two competitors will be submitting bids for the property. Strassel does not know what the competitors will bid, but he assumes for planning purposes that the amount bid by each competitor will be uniformly distribute between $ and $ a Develop a worksheet that can be used to simulate the bids made by the two competitors. Strassel is considering a bid of $ for the property. Using a simulation of trials, what is the estimate of the probability Strassel will be able to obtain the property using a bid of $Round your answer to the nearest tenth of a percent. b How much does Strassel need to bid to be assured of obtaining the property? $ $ $ c Use the simulation model to compute the profit for each trial of the simulation run. With maximization of profit as Strassel's objective, use simulation to evaluate Strassel's bid alternatives of $$ or $Round your answers to the nearest dollar. expected profit for a bid of $ expected profit for a bid of $ expected profit for a bid of $ A bid ults in the largest mean profit of the three alternatives. Show your w spreadsheet. Submit a file with a maximum size of This answer has not been graded yet.
Strassel Investors buys real estate, develops it and resells it for a profit. A new property is available, and Bud Strassel, the president and owner of
Strassel Investors, believes if he purchases and develops this property, it can then be sold for $ The current property owner has asked for bid:
and stated that the property will be sold for the highest bid in excess of $ Two competitors will be submitting bids for the property. Strassel
does not know what the competitors will bid, but he assumes for planning purposes that the amount bid by each competitor will be uniformly distribute
between $ and $
a Develop a worksheet that can be used to simulate the bids made by the two competitors. Strassel is considering a bid of $ for the
property. Using a simulation of trials, what is the estimate of the probability Strassel will be able to obtain the property using a bid of
$Round your answer to the nearest tenth of a percent.
b How much does Strassel need to bid to be assured of obtaining the property?
$
$
$
c Use the simulation model to compute the profit for each trial of the simulation run. With maximization of profit as Strassel's objective, use
simulation to evaluate Strassel's bid alternatives of $$ or $Round your answers to the nearest dollar.
expected profit for a bid of $
expected profit for a bid of $
expected profit for a bid of $
A bid
ults in the largest mean profit of the three alternatives.
Show your w
spreadsheet. Submit a file with a maximum size of
This answer has not been graded yet.
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