b. Find an estimate of p2, the true proportion of less-experienced bidders who fall prey to the P2 =(Type an integer or a decimal. Round to three decimal places as needed.) %3D

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
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Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 10CYU
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17) part b
9.4.63
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In auction bidding, the "winner's curse" is the phenomenon of the winning (or highest) bid price being above the expected value of the item being auctioned. A study was conducted to see if less-experienced bidders were more likely to be
impacted by the curse than super-experienced bidders. The study showed that of the 172 bids by super-experienced bidders, 24 winning bids were above the item's expected value, and of the bids by the 138 less-experienced bidders, 36 winning
bids were above the item's expected value. Complete parts a through d
a. Find an estimate of p, the true proportion of super-experienced bidders who fall prey to the winner's curse
P = 0.140 (Type an integer or a decimal. Round to three decimal places as needed.)
b. Find an estimate of p2, the true proportion of less-experienced bidders who fall prey to the winner's curse.
P2 = (Type an integer or a decimal. Round to three decimal places as needed.)
Transcribed Image Text:9.4.63 Question Help v In auction bidding, the "winner's curse" is the phenomenon of the winning (or highest) bid price being above the expected value of the item being auctioned. A study was conducted to see if less-experienced bidders were more likely to be impacted by the curse than super-experienced bidders. The study showed that of the 172 bids by super-experienced bidders, 24 winning bids were above the item's expected value, and of the bids by the 138 less-experienced bidders, 36 winning bids were above the item's expected value. Complete parts a through d a. Find an estimate of p, the true proportion of super-experienced bidders who fall prey to the winner's curse P = 0.140 (Type an integer or a decimal. Round to three decimal places as needed.) b. Find an estimate of p2, the true proportion of less-experienced bidders who fall prey to the winner's curse. P2 = (Type an integer or a decimal. Round to three decimal places as needed.)
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