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Suppose each of five companies is possibly going to submit a sealed bid for a government contract. Each of these companies will either submit a
Suppose each of five companies is possibly going to submit a sealed bid for a government contract. Each of these companies will either submit a bid, with probability 0.7, or will not, with probability 0.3. Any submitted bid has a triangular distribution with parameters min=30, most likely= 40, and max=60. (These values are in $ thousands.) The bidding actions of the companies are probabilistically independent. After running a simulation with at least 5,000 replications, what is the most realistic conclusion about the highest bid?
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