A building contractor is preparing a bid on a new construction project. Two other contractors will be submitting bids for the same project. Based on past bidding practices and the requirements of the project, the bid from Contractor A can be described with a uniform distribution between $600,000 and $800,000, while the bid from Contractor B can be described with a normal distribution with a mean of $700,000 and standard deviation of $50,000.
a. If the building contractor submits a bid of $750,000, what is the probability that the building contractor will obtain the bid?
b. The building contractor is also considering bids of $765,000 and $775,000. If the building contract would like to bid such that the probability of winning the bid is about 0.80, what bid would you recommend? Repeat the simulation with bids of $765,000 and $775,000 to justify your recommendation.