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15.3 Exercise 27

Avg difficulty 2.5

A property is offered for sale. Experience indicates the number N of bids is a random variable having values 0 through 10, with respective probabilities

Value 0 1 2 3 4 5 6 7 8 9 10
Probability 0.05 0.15 0.15 0.20 0.10 0.10 0.05 0.05 0.05 0.05 0.05

The market is such that bids (in thousands of dollars) are iid, uniform [150, 200] Determine the probability of at least one bid of $180,000 or more.

Pfeiffer, Applied Probability, 15.3 Problems on Random Selection, exercise 27

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Adapted from Applied Probability © 2009 Paul E. Pfeiffer. Licensed under CC BY 3.0. Source: Applied Probability. Imported at revision d7a0420.