Question

As part of an inheritance, three children, Abby, Ben and Carla, are dividing four vehicles using Sealed Bids.

Their bids (in thousands of dollars) for each item is shown below.
Ben
12
12
1
7
In the final allocation, Abby gets which items? (click none, one, or multiple boxes)
Motorcycle
Car
Tractor
Boat
Motorcycle
Car
Tractor
Boat
Abby
7
8
5
4
Carla
8
13
4
5
In addition, she Select an answer to/from the estate: $
Give your answer to the last question to the nearest dollar (careful here the original amounts were in
thousands of dollars)

Answer 1

In the sealed bid process, Abby receives the Tractor as her bid is the highest for that vehicle. The other items are allocated to whoever bids the most. Abby's financial settlement regarding the estate depends on the total value of the inheritance and the sum of the winning bids.

Step-by-step explanation:

The inheritance problem involving Abby, Ben, and Carla dividing four vehicles can be solved by comparing their sealed bids. Each child's bid represents the value they assign to each vehicle. The vehicle goes to the person who places the highest bid on it, and the value of that vehicle, according to the winning bid, is deducted from that person's share of the estate. The process is as follows:

• Compare each person's bid for the Motorcycle. Abby bids 7, Ben bids 12, and Carla bids 8. Ben's bid is the highest, so he gets the Motorcycle.
• Compare bids for the Car. Abby bids 8, Ben bids 12, and Carla bids 13. Carla's bid is the highest, so she gets the Car.
• Compare bids for the Tractor. Abby bids 5, Ben bids 1, and Carla bids 4. Abby's bid is the highest, so she gets the Tractor.
• Finally, compare bids for the Boat. Abby bids 4, Ben bids 7, and Carla bids 5. Ben's bid is the highest, so he gets the Boat.

According to this method, Abby will receive the Tractor.

To determine how much Abby needs to pay or receive from the estate, we calculate the sum of the winning bids and subtract that from the total inheritance value (assuming the total value is evenly divided among the three children).

Assuming the estate valuation is such that each child should receive an equal share before the deductions for the vehicles are made, the amounts paid by or owed to the children will balance out the values of those vehicles according to their bids.