Jerry's Auction House in Purloined Hubcap, Oregon, Holds Sealed-Bid Used-Car

Jerry's Auction House in Purloined Hubcap, Oregon, holds sealed-bid used-car auctions every Wednesday.Each car is sold to the highest bidder at the second-highest bidder's bid.On average, 2/3 of the cars that are auctioned are lemons and 1/3 are good used cars.A good used car is worth $2,700 to any buyer.A lemon is worth $240 to any buyer.Most buyers can do no better than picking at random from among these used cars.The only exception is Al Crankcase.Recall that Al can sometimes detect lemons by tasting the oil on the car's dipstick.A good car never fails Al's test, but half of the lemons fail his test.Al attends every auction, licks every dipstick, and bids his expected value of every car given the results of his test.Al will bid

A) $1,470 for cars that pass his test and $240 for cars that fail his test.Normal bidders will get only lemons.
B) $1,060 for cars that pass his test and $340 for cars that fail his test.Normal bidders will get good cars only 1/6 of the time.
C) $1,350 for cars that pass his test and $900 for cars that fail his test.Normal bidders will get only lemons.
D) $900 for cars that pass his test and $240 for cars that fail his test.Normal bidders will get good cars only 1/6 of the time.
E) $480 for cars that pass his test and $240 for cars that fail his test.Normal bidders will get good cars only 1/12 of the time.