---### Understanding the Winner's Curse in Auction BiddingIn auction bidding, the "winner's curse" refers to the phenomenon where the winning (or highest) bid price exceeds the expected value of the item being auctioned. A study was conducted to determine if less-experienced bidders are more susceptible to the winner's curse compared to super-experienced bidders. The study's findings revealed the following:- Out of 172 bids by super-experienced bidders, 24 winning bids exceeded the item's expected value.- Out of 138 bids by less-experienced bidders, 36 winning bids exceeded the item's expected value.**Task:**a. Calculate an estimate of $ \hat{p}_1 $, the true proportion of super-experienced bidders who fall prey to the winner's curse.\[ \hat{p}_1 = \](Type an integer or a decimal. Round to three decimal places as needed.)---Feel free to enter the solution calculation and any further analysis you'd like to add based on the data provided.

X1=24, n1=172 X2=36, n2=138 p1cap=X1/n1, p2cap=X2/n2

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, =(Type an integer or a decimal. Round three decimal places as needed.)

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, =(Type an integer or a decimal. Round three decimal places as needed.)

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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