Bidding (Excel)

Document Sample

```					                     A                             B                  C               D            E            F         G         H          I        J         K         L
1    Bidding Problem
2
3    Company's cost to prepare a bid                \$350
4    Company's cost to complete project           \$10,000
5
6    Competitors' bids - triangularly distributed between a times company's cost
7      and b times company's cost, with most likely value c times company's cost
8                      a                                      1
9                      c                                    1.3
10                      b                                      3
11
12    Simulation
13    Competitor                                           1                  2              3            4
14    Competitor's bid                         #NAME?              #NAME?           #NAME?       #NAME?
15
16    Outcomes for company
17                       Company's bid            Wins bid?     Company's profit
18                             No bid                                       \$0
19                           \$10,500               #NAME?         #NAME?
20                           \$11,000               #NAME?         #NAME?
21                           \$11,500               #NAME?         #NAME?
22                           \$12,000               #NAME?         #NAME?
23                           \$12,500               #NAME?         #NAME?
24                           \$13,000               #NAME?         #NAME?
25                           \$13,500               #NAME?         #NAME?
26                           \$14,000               #NAME?         #NAME?
27                           \$14,500               #NAME?         #NAME?
28                           \$15,000               #NAME?         #NAME?
29
30    Summary measures from data table below
31                                                     No bid          \$10,500        \$11,000      \$11,500    \$12,000   \$12,500   \$13,000   \$13,500   \$14,000   \$14,500   \$15,000
32    Averages                                            \$0             \$140           \$600         \$940      \$1,230    \$1,400    \$1,450    \$1,400    \$1,210    \$1,000     \$500
33    Stdevs                                              \$0               \$70          \$219         \$523       \$819     \$1,151    \$1,477    \$1,759    \$1,961    \$2,073    \$1,888
34
35    Data table showing profits from various bids
36                           Replication           No bid             \$10,500         \$11,000       \$11,500 \$12,000 \$12,500 \$13,000 \$13,500 \$14,000 \$14,500 \$15,000
37                                                    \$0           #NAME?           #NAME?       #NAME?      #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
38                                     1              \$0                \$150            \$650         \$1,150   \$1,650  \$2,150   (\$350)  (\$350)  (\$350)  (\$350)  (\$350)
39                                     2              \$0                \$150            \$650         \$1,150   \$1,650  \$2,150  \$2,650  \$3,150  \$3,650  \$4,150  \$4,650
40                                     3              \$0                \$150            \$650         \$1,150    (\$350)  (\$350)  (\$350)  (\$350)  (\$350)  (\$350)  (\$350)
41                                     4              \$0                \$150            \$650         \$1,150   \$1,650  \$2,150  \$2,650  \$3,150  \$3,650  \$4,150  \$4,650
42                                     5              \$0                \$150            \$650          (\$350)   (\$350)  (\$350)  (\$350)  (\$350)  (\$350)  (\$350)  (\$350)
43                                     6              \$0                \$150            \$650         \$1,150   \$1,650  \$2,150   (\$350)  (\$350)  (\$350)  (\$350)  (\$350)
134                                   97              \$0                \$150            \$650         \$1,150   \$1,650   (\$350)  (\$350)  (\$350)  (\$350)  (\$350)  (\$350)
135                                   98              \$0                \$150            \$650         \$1,150   \$1,650  \$2,150  \$2,650   (\$350)  (\$350)  (\$350)  (\$350)
136                                   99              \$0                \$150            \$650         \$1,150   \$1,650  \$2,150  \$2,650  \$3,150   (\$350)  (\$350)  (\$350)
137                                  100              \$0                \$150            \$650         \$1,150   \$1,650  \$2,150  \$2,650  \$3,150   (\$350)  (\$350)  (\$350)
Averages

\$1,600

\$1,400

\$1,200

\$1,000
Average Profit

\$800

\$600

\$400

\$200

\$0
No bid   \$10,500   \$11,000   \$11,500   \$12,000    \$12,500     \$13,000   \$13,500   \$14,000   \$14,500   \$15,000

Bid Amount

Page 2
StDevs

\$2,500

\$2,000

\$1,500
Standard deviation

\$1,000

\$500

\$0
No bid   \$10,500   \$11,000   \$11,500   \$12,000   \$12,500    \$13,000   \$13,500   \$14,000   \$14,500   \$15,000

Bid

Page 3

```
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