Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $10,000 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $10,000 and $15,000.

(d)

Suppose you know someone who is willing to pay you $16,000 for the property.

What is the expected profit in dollars if you bid the amount given in part (c)?

$ _________

Find a bid in dollars which produces a greater expected profit than bidding the amount given in part (c). (If an answer does not exist, enter DNE.)

$ _________