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

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<$1Mbetween $1.1M and $1.4Mbetween $1.6M and $1.9Mbetween $2.1M and $2.4M>$2.6M
probability0.20.30.30.150.05

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?

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