question archive Genesis Medical Imaging is deciding whether to bid on a new contract to supply a local area hospital with a new MRI machine
Genesis Medical Imaging is deciding whether to bid on a new contract to supply a local area hospital with a new MRI machine
Subject:AccountingPrice: Bought3
Genesis Medical Imaging is deciding whether to bid on a new contract to supply a local area hospital with a new MRI machine. Such bids are confidential, and the lowest bid entered wins the contract. Genesis estimates it costs $1,000 to prepare for the bid and $900,000 for the MRI machine if it wins the contract. The following table shows the probabilities of Genesis winning the bid given the bids it submits.
Provide the answer in excel with the formulas and give an explanation of the answer
|
Probability of Winning |
Value of Bids |
|
40 |
1,000,000 |
|
30 |
1,250,000 |
|
20 |
1,750,000 |
|
10 |
2,000,000 |
