Originally Posted by
Jar23 A contractor has found through experience that the low bid for a job (exclude his own bid) is a random variable that is uniformly distributed over the interval (0.75C, 2C) where C is the contractor's cost estimate (no profit or loss) of the job. If profit is defined as 0 if the contractor does not get the job (his bid id greater that the low bid) and as the difference between his bid cost estimate C, if he gets the job; what should he bid (in terms of C) to maximize his expected profit?
Does anyone even understand where I would begin here or what time of way I would go about solving this???? THankssss again.