Problem 12-15 (Algorithmic) 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 if he purchases and develops this property it can then be sold for $160000 The current property owner has asked for bids and stated that the property will be sold for the highest bid in excess of $100000. 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 $100000 and $150000. Develop a the property using a bid of $140000? Round your answer to 1 decimal place. Enter your answer as a percent. a or sheet that can be used to simulate the bids made by the two co petitors. Strassel is considering ? bid of $140000 for the property. Using a simulation of 1000 trials, what is the estimate of the probability Strassel ill be able to obtain b. How much does Strassel need to bid to be assured of obtaining the property? What is the profit associated with this bid? Use the simulation model to compute the pro it for each trial of the simulation run. With maximization o bid, and what is the expected profit? c. profit as Strassel’s ob e tive use simulation to evaluate Strassel’s bid alternatives of $140000 $140000 or s 150000 what is the ecommended A bid of results in the largest mean profit of

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