Let X1, . . . , Xn be random variables corresponding to n independent bids for an item on sale. Suppose each Xi is uniformly distributed on [100, 200]. If the seller sells to the highest bidder, what is the expected sale price? A)Find the pdf of W = Max (X1, X2, …, Xn). B) Find E(W).
Let X1, . . . , Xn be random variables corresponding to n independent bids for an item on sale. Suppose each Xi is uniformly distributed on [100, 200]. If the seller sells to the highest bidder, what is the expected sale price? A)Find the pdf of W = Max (X1, X2, …, Xn). B) Find E(W).
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 31E
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Let X1, . . . , Xn be random variables corresponding to n independent bids for an item on sale. Suppose each Xi is uniformly distributed on [100, 200]. If the seller sells to the highest bidder, what is the expected sale price?
A)Find the
B) Find E(W).
Hint: Let W = Max (X1, X2, …, Xn).
1. P[W ≤ c] = P[Max (X1, X2, …, Xn) ≤ c] = P[X1 ≤ c, X2 ≤ c,…, Xn ≤ c]
2. Obtain the pdf of W by differentiating its cdf of W.
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