You want to sell your car for SAR 75,000/-. You assess the probability of getting an...

 

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You want to sell your car for SAR 75,000/-. You assess the probability of getting an offer on your car of SAR 65,000 (or higher) to be 60%, based on recent car sales in your area. Suppose that you assess the probability that you will get an offer of SAR 50,000 or higher to be 95% based on recent sales activity in your area. Finally, you think you have only a 5% chance of getting an offer of SAR50,000 or more in the next six weeks and that you will have to rent your car-a value you assess to be worth only SAR 35,000/- to you at the present time. You think there is a 5% chance that you will not get an offer and ultimately rent your car to a car renting company. What are your target point and reservation price in this case? You want to sell your car for SAR 75,000/-. You assess the probability of getting an offer on your car of SAR 65,000 (or higher) to be 60%, based on recent car sales in your area. Suppose that you assess the probability that you will get an offer of SAR 50,000 or higher to be 95% based on recent sales activity in your area. Finally, you think you have only a 5% chance of getting an offer of SAR50,000 or more in the next six weeks and that you will have to rent your car-a value you assess to be worth only SAR 35,000/- to you at the present time. You think there is a 5% chance that you will not get an offer and ultimately rent your car to a car renting company. What are your target point and reservation price in this case?

Answer rating: 100% (QA)

Step 12 d Target Point SAR 75000 Reservation Point SAR 58... View the full answer