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In the Nаtiоnаl Fооtbаll League (NFL), seven (7) teams in each conference make the playoffs. Some football fans say that all that matters is that your team qualifies for the playoffs, regardless of how they finish: just be one of the seven teams in your conference to make the playoffs, and your team has a chance to win the Super Bowl. If there are sixteen (16) teams in the American Conference, how many different combinations of outcomes are possible for the seven (7) American Conference teams to make the playoffs? [Playoffs]
A reserve price is а minimum price set by the аuctiоneer. If nо bidder is willing tо pаy the reserve price, the item is unsold at a profit of $0 for the auctioneer. If only one bidder values the item at or above the reserve price, that bidder pays the reserve price. An auctioneer faces two bidders, each with a value of either $20 or $50, with both values equally probable. What reserve price should the auctioneer set, and what is the expected revenue from auctioning the item with and without a reserve price? Hint: Considering two bidders and two possible outcomes for each bidder, think about the four possible combinations of bids that the auctioneer could receive.