Ch%209_p3%20%282%29

# Ch%209_p3%20%282%29 - 2/11/2010 7:37 Simulation Duration...

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Sheet1 Page 1 Chapter 9 Problem 3 Biotech's Actual Worth #ADDIN? Warren's Bid #ADDIN? Warren's Profit #ADDIN? The more is bid, the more is lost!! Thus he should bid \$0. If Warren Bid of \$x is accepted, on average value of firm is \$x/2. Warren therefore will gain 1.5*(x/2); '-x = -0.25*x on each accepted bid for \$x. Thus bid of \$0 is best. Summary Information Workbook Name P9_3.XLS Number of Simulations 10 Number of Iterations 100 Number of Inputs 2 Number of Outputs 1 Sampling Type Latin Hypercube Simulation Start Time 2/11/2010 7:37 Simulation Stop Time

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Unformatted text preview: 2/11/2010 7:37 Simulation Duration 00:00:01 Random Seed 1964148198 Output Statistics Name Cell Sim Minimum Mean Maximum Warren's ProfitC5 1 Warren's ProfitC5 2-9.4-0.25 3.92 Warren's ProfitC5 3-19.4-0.99 9.23 Warren's ProfitC5 4-29.4-2.24 13.69 Warren's ProfitC5 5-39.4-4 19.19 Warren's ProfitC5 6-49.4-6.23 24.6 Warren's ProfitC5 7-59.4-8.96 29.93 Warren's ProfitC5 8-69.4-12.21 33.83 Warren's ProfitC5 9-79.4-15.96 39.84 Warren's ProfitC5 10-89.4-20.2 44.99 Sheet1 Page 2...
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## Ch%209_p3%20%282%29 - 2/11/2010 7:37 Simulation Duration...

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