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Anna's Antiques Expects to Get Three Bidders for the Unique

question 74

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Anna's Antiques expects to get three bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If three bidders show up at the auction and two of the bidders are low value,what would the winning price be?


Definitions:

Overdose

An excessive and dangerous dose of a substance, typically a drug, leading to severe toxic reactions or death.

Poison

A substance that is harmful or lethal to organisms when introduced or absorbed, capable of causing illness or death.

Methadone

A synthetic opioid used medically both as a pain reliever and in the treatment of opioid addiction.

Endorphins

Naturally occurring chemicals in the body that not only alleviate pain but also enhance sensations of joy.

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