SciTool is now bidding for another contract: From historical data, there's a 20% chance that there are
Fantastic news! We've Found the answer you've been seeking!
Question:
SciTool is now bidding for another contract:
From historical data, there's a 20% chance that there are no other firms bidding for the contract. We also know if there are competitors, their bidding prices follow the following distribution;
Competitor's bid price | <$1M | between $1.1M and $1.4M | between $1.6M and $1.9M | between $2.1M and $2.4M | >$2.6M |
probability | 0.2 | 0.3 | 0.3 | 0.15 | 0.05 |
Question:
Suppose SciTool bids $2.0M. When there is competition, the firm that has a lower bid price wins. ?
What is the winning probability of SciTool?
Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
Posted Date: