Rick Solon, CEO of Orion Bus Company

Regarding your concern about whether historical control selective teaching can benefit future instructions for our bus set about, this is to introduce and recommend a more effective bidding model which could wait on predict the victorious bid and maximize financial returns of the company during bidding process. Firstly, how does the model attain?Based on the analysis of the past industry bid data, I discover from the Regression Model (See Exhibit 1) that a strong correlation coefficient exists between the loving bid price and several objective factors including hunting watch cost per bus, the number of units to be purchased, and the bus model, 35 or 40, while it has little to do with the condition whether it is diesel-powered or high-floored.Although its steady hard for us to determine whether to increase the volume of sales or to increase margin at the same volume and produce an strong price to win the bid due to complex situations, the model does help us gain access to t he winning bid price soothsaying and provide us with an optimal price by taking profit, evaluate value and winning probability into consideration. Specifically, the highest expected value is the best bidding choice to maximize financial returns. Secondly, how can we apply it in the bid for Louisville, KY bus supply contract?With the aid of the above model, a suggested persist of winning bid price is generated which is between $248,001 and $278,189, implying the best choice lies in spite of appearance the interval. Further, Exhibit 2 shows an opposite direction between profit and winning probability, that is, the more profit, the less probability to win, and vice versa. As a result, the report point is how to achieve a best joint between them. convey to the model, we can easily arrive at the bid price $259,000 for the contract with the highest expected value $15,034, which is the optimal theoretical bid price with level best returns in this case.In addition, other subjective f actors such as estimates of competitors bids should similarly be considered before making the final decision. The above analysis reveals a significant impact that historical bidding data exerts on the succeeder of our future bid. Accordingly, its strongly advisable to collect more information and build database so that more factors could be considered and analyzed for the future bidding. Im always at your service if youre interested in in-depth discussion.