Do 100 simulations on a worksheet and determine the


Hatch Investments buys real estate, develops it and resells it for a profit. A new property is available and the President, Brian of Hatch Investments believes it will sell for $200,000. The owner will sell it to the highest bidder in excess of $130,000. There are two competitors in the auction and Hatch doesn't know what they will bid but knows that each of their bids will be uniformly distributed between $130,000 and $180,000. Simulate this process where Hatch is considering bids of $150,000, $165,000 and $180,000. Do 100 simulations on a worksheet and determine the probability Hatch is successful with each of these choices and determine the best of these three by calculating the expected profit.

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Business Management: Do 100 simulations on a worksheet and determine the
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