Question

roommates (part 2)
now, consider the following bids according to three people splitting a
washer and dryer.
what is patricks fair share? round your answer to the nearest penny.
kevins fair share?
stanleys fair share?
suppose the group decides on the following division.

• patrick gets the washer and pays $100
• kevin gets no items and receives $250
• stanley gets the dryer and pays $150

what is patricks compensation?
kevins compensation?
stanleys compensation?
the sum of compensations
is the division given above a fair division?

Explanation:

Step1: Calculate Patrick's compensation

Patrick gets the washer (valued at $300$ by him) and pays $100$. His compensation is $300 - 100=200$.

Step2: Calculate Kevin's compensation

Kevin gets no items and receives $250$. So his compensation is $250$.

Step3: Calculate Stanley's compensation

Stanley gets the dryer (valued at $400$ by him) and pays $150$. His compensation is $400-150 = 250$.

Step4: Calculate the sum of compensations

Sum \(=200 + 250+250=700\)

Answer:

700