# probability of winning

The company's objective is to select the bid that maximizes its expected profit.

A. What is the optimal bid for the company to make?

B. What is the expected profit associated with the optimal bid in part a?

C. What is the risk profile for the optimal bid in part a?

D. Consider the probability of winning the optimal bid. If this parameter were allowed to vary, while all other parameters were kept unchanged, what values could it take without altering the optimal selection?

See attached file for full problem description.

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#### Solution Summary

This job predicts the probability of winning.

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