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Find the customer willingness to pay for the car

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Reference no: EM132506330

A population of 1000 is hoping to sell their used cars. The value of a car V, ranges from $0 and $3000. The distribution of car values is such that the number of used cars worth less than $V is V/3. The value of a car to a buyer is the car's expected value. An owner can have the car inspected for $300 which will allow the car to sell at the true value.

Note: for part a ignore the market price for the used car and instead find the customer's willingness to pay for the car

Reference no: EM132506330

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