Problem

In the SciTools example, the probabilities for the low bid of competitors, given that th...

In the SciTools example, the probabilities for the low bid of competitors, given that there is at least one competing bid, are currently 0.2, 0.4, 0.3, and 0.1. Let the second of these be p, and let the others sum to 1 = p but keep the same ratios to one another: 2 to 3 to 1. Use a one-way data table to see how (or whether) the optimal decision changes as p varies from 0.1 to 0.7 in increments of 0.05. Explain your results.

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