Back to 15.3 Problems on Random Selection

15.3 Exercise 26

Avg difficulty 2.5

A job is put out for bids. Experience indicates the number N of bids is a random variable having values 0 through 8, with respective probabilities

Value	0	1	2	3	4	5	6	7	8
Probability	0.05	0.10	0.15	0.20	0.20	0.10	0.10	0.07	0.03

The market is such that bids (in thousands of dollars) are iid, uniform [100, 200]. Determine the probability of at least one bid of $125,000 or less.

Pfeiffer, Applied Probability, 15.3 Problems on Random Selection, exercise 26

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