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Assignment:First and foremost, focus on improving your variable names as this will likely have the biggest positive effect for readability. Next, you should focus on breaking larger pieces of code into smaller functions that serve one specific purpose. These should also have good names that explain what they do. Finally, if you notice any part of the code that is repeated, place that in a function and call the function instead of repeating the same block of code in multiple places. Your ultimate goal should be to make the code more readable. Try to follow pep8 guidelines. I’ll also attach the original questions that lead to the algorithm for logical continuity in the following.Original Question (resource): An ascending clock auction is an auction where the seller starts bidding at a low price and gradually raises the price as the auction progresses. As the price increases, bidders can choose to stay in the auction (bid for the item at the clock price) or drop out and forgo their chance at winning the item. The clock price is usually raised by a fixed discrete increment. The auction ends when there is only one bidder remaining. The winning bidder gets the item and pays the posted price (clock price from the last round with multiple bidders).Example: A seller is auctioning off a baseball card. The starting auction price is $10 and the clock increment is $1. In the first round of bidding there are 5 people who place bids of $10. The seller then raises the price to $11 and bidding continues until there is only one bidder willing to pay the clock price. Say this continues until the clock price is $15 and there are two bidders left. If one bidder drops out, the remaining bidder wins the baseball card and pays the posted price of $14.You will need to write a Monte Carlo simulation to estimate the seller revenue from an ascending clock auction. For this assignment, assume the following parameters:There are 5 buyers
Buyer values are drawn between 0 and 100 in increments of 5
Seller reserve prices are allowed to be between 0 and 100 in increments of 5
The item is considered sold when the clock price is greater than or equal to the reserve price
The auction ends when there is one or less buyers bidding at the clock price.
In the case of two buyers dropping out at the same price, you can go back to the previous price and randomly choose the winning buyer.
What is the expected revenue if there are 5 buyers and the clock increment is $1?
What is the expected revenue if there are 5 buyers and the clock increment is $10? How did the increment affect the expected revenue and why does it have that effect?
What is the expected revenue if there are 20 buyers with a clock increment of $1? Compare with item (a) and explain the difference.
Let’s extend our Monte Carlo simulation of the ascending clock auction to allow the seller to choose a reserve price. A reserve price is the minimum price a seller is willing to accept to sell the item. If the final clock price is below the reserve price the seller receives zero revenue. This means the auction now ends when either there are zero buyers bidding at the current clock price, or there is one buyer bidding and the reserve price has been met. D. What reserve price should the seller choose (which price generates the most revenue)? Provide an illustration that supports your result.2. Vegas Hotel ProjectionsYou are tasked with forecasting the profits of a Vegas hotel. You come up with the following model:π ( t ) = 750 + 50 t n + 1where π ( t ) is the profit in year t, and n is the number of hotels the main competitor owns.We want to forecast the expected total profit over the next T years, given the following rules:You begin in year 1.
The main competitor currently has no hotels.
They can only build one hotel at a time.
A hotel takes m years to build.
You can set T = 10, m = 2. To run Monte Carlo simulations of the profit, you will need to randomly generate the number of hotels the competitor has each year. An example of a valid construction profile is: { 0 , 1 , 1 , 2 , 2 , 2 , 3 , 3 , 3 , 3 }. This can be read the following way:The competitor begins building on the first year and finishes construction on the second (at that point it counts as a built hotel).
The competitor starts another immediately after (year 3).
Finally, they start a third hotel in year 6.
To be valid, the profile must be of length T and increment by at most one every other element (for m = 2). In the above example, the total profit over the 10 years is 3850. Find the expected profit. (Note: I will be lenient with how you sample from the space of possible competitor build profiles. Preferably, each possible profile will be equally likely.)

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