In the SciTools example, the probabilities for the low bid of competitors, given that there is at

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In the SciTools example, the probabilities for the low bid of competitors, given that there is at least one competing bid, are currently 0.2, 0.4, 0.3, and 0.1. Let the second of these be p, and let the others sum to 1 - p but keep the same ratios to one another: 2 to 3 to 1. Use a one-way data table to see how (or whether) the optimal decision changes as p varies from 0.1 to 0.7 in increments of 0.05. Explain your results.

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Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

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