Suppose you are interested in bidding on a parcel of land and you know that one other bidder is interested. The seller has announced that the highest bid in excess of $25,000 will be accepted. The other competitors bidding price for the land will vary evenly from $25,000 to $32,500.

e) Suppose that you bid $29,000. What is the probability that your bid will be accepted? (i.e. that yours will be the winning bid)

f) The competitor will not go higher than $29,750. Knowing this, what is the probability that his actual bid is above $27,200?

g) You want the probability that your bid is higher than the competitors bid to be at least 0.95. What should you bid to ensure this?