What are the input parameters for the auction simulation model?

• A. Estimated value of the property, number of bidders, submitted bid amounts
• B. Estimated value of the property, number of bidders
• C. Submitted bid amounts, Estimated value of the property
• D. Number of bidders, Submitted bid amounts

Answer: (A)

In an auction simulation, you need three essential inputs to capture how the event unfolds: the estimated value of the property, the number of bidders, and the submitted bid amounts. The estimated value sets the benchmark for what the asset is worth and helps determine whether bids are competitive or meet a reserve. The number of bidders controls the level of competition; more bidders typically increases bidding activity and the final price, while fewer bidders reduces competitive pressure. The submitted bid amounts are the actual actions taken by participants and determine who wins and at what price.

Without the property value, you can’t judge if a bid is favorable or if a reserve is met. Without the number of bidders, you miss the crowding effect and how competition changes outcomes. Without the bids, there’s no result to evaluate. The other options each omit one of these crucial elements, so they can’t fully drive a realistic auction outcome.