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You hold an auction and Five bidders were invited. You estimate that each bidder has a value of either 15 or 25 for the item,
You hold an auction and Five bidders were invited. You estimate that each bidder has a value of either 15 or 25 for the item, and the probabilities attach to each value is 50%. What is the expected price? What is the price if three of the five bidders collude?Put your answers in table form for each question, so there should be two tables for your answers. Explain step by step and put the computations.
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