Reference no: EM133531005
Case Study: Strassel Investors buys real estate, develops it, and resells it for a profit. A new property is available, and Bud Strassel, the president and owner of Strassel Investors, believes it can be sold for $160,000. The current property owner asked for bids and stated that the property will be sold for the highest bid in excess of $100,000. Two competitors will be submitting bids for the property. Strassel does not know what the competitors will bid, but he assumes for planning purposes that the amount bid by each competitor will be uniformly distributed between $100,000 and $150,000. Strassel is considering submitting a bid of anywhere between $125000 and $150000 (in increments of $5000) for the property. He has consulted you to help him decide upon the "right" amount to bid for the property in order to maximize his expected profit. a. Let's assume that Strassel decides to bid $125000. Build a simulation model corresponding to the above scenario and run it for 5000 iterations to answer parts b, c, and d. b. Based on your simulation model what is the probability that Strassel will be able to obtain the property with the bid of 125,000?
Question A) Let's assume that Strassel decides to bid $125000. Build a simulation model corresponding to the above scenario and run it for 5000 iterations to answer parts b, c, and d.
Question B) Based on your simulation model what is the probability that Strassel will be able to obtain the property with the bid of 125,000?
Question C) Please provide a 95% confidence interval on your probability estimate from part b.
Question D) What is the expected profit associated with the bid of $125,000?
|
What is the expected value of sample information
: What is the expected value of sample information (EVSI) - What is expected value of perfect information (EVPI)? provide a corresponding risk profile for
|
|
Write a description of the dataset and project
: ITECH1103 Big Data and Analytics, Federation University - Write a description of the dataset and project, and its importance for the organization
|
|
Why would he have grounds to dispute this rating
: As a result of his decline in sales, Xavier recently received a bad job performance rating. Why would he have grounds to dispute this rating?
|
|
How to push back on legal negotiations on contract terms
: How to push back on legal negotiations on contract terms for geotechnical consultants , such as data accuracy responsibility, third party work, usefulness of op
|
|
What is the expected profit associated with the bid
: what is the probability that Strassel will be able to obtain the property with the bid of 125,000? What is the expected profit associated with the bid
|
|
How many shares will be outstanding after the stock split
: Facto Corp has 10,000 shares of common stock outstanding with a par value of 0.01 per share. How many shares will be outstanding after the stock split?
|
|
How has your learning from this experience influenced
: How has your learning from this experience influenced what you will do going forward through your doctoral capstone process? Be sure to provide supportive
|
|
What role does digital media play in defamiliarizing
: What role does digital media play in defamiliarizing cultural diversity by providing platforms for underrepresented voices to be heard, and what challenges
|
|
Do you believe that a comprehensive records management
: do you believe that a comprehensive records management strategy is more crucial for industries dealing with sensitive information, such as healthcare
|