Solve the problem Solve the problem Solve the problem 6. (e0 points) After livin

Question

Solve the problem Solve the problem Solve the problem 6. (e0 points) After living together for a year, Mary, Martha, and Alice have decided to go their separate ways. They have several items they bought together as well as some moving-out chores to divide. The values they place on each are given below. Using the sealed bids method, find the final allocation Mary Martha Alice 30 90 Dining Table 120 80 130 Detail Cleaning | -70 1-40-1-50 40 Vacuum Cleaner 110 20 120 Dishes Cleaning Carpets -30-60 -50

Explanation / Answer

In the sealed bids method, each item is awarded to the highest bidder, and the chore is also given to the highest bidder (as we have bids in negative). And so, the dishes are given to Mary since she is the highest bidder. The vacuum cleaner is given to Martha, dining table to Alice, detail cleaning to Martha, and cleaning carpets to Mary. Now, we add the total bids placed by the three. Mary bid for 170, Martha for 120, and Alice for 150. And now we divide the total bid by the number of players, 3 in this case.

So, the fair dollar share is as follows:

Mary - 56.67, Martha - 40, and Alice - 50.

As Mary received items worth 10, Martha worth 40, and Alice worth 130, Mary receives 46.67 from the estate, Martha does neither receive nor owe anything to the estate, whereas Alice owes 80 to the estate.

Hence, the estate receives 80 temporarily and gives 46.67, the estate has leftover of 33.33 which is divided equally among the three.

So, Mary receives the dishes and has to clean the carpets and she also receives 57.78 (46.67 + 11.11).

Martha receives the vacuum cleaner and has to do detail cleaning and she also receives 11.11

Alice receives the dining table and she pays 68.89 (80 - 11.11)

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