Question: Let X1, X2,..., X, be random variables denoting n inde- pendent bids for an item that is for sale. Suppose each X, is uniformly distributed

Let X1, X2,..., X, be random variables denoting n inde- pendent bids for an item that is for sale. Suppose each X, is uniformly distributed on the interval [100, 200]. If the seller sells to the highest bidder, how much can he expect to earn on the sale? [Hint: Let Y= max(X1, X2,..., X). First find F,(y) by noting that Y yiff each X, is y. Then obtain the pdf and E(Y).]

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