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 win 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. P1 = 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 = 0.261 (Type an integer or a decimal. Round to three decimal places as needed.) c. Construct a 90% confidence interval for (p, - P2). (Round to three decimal places as needed.)
Family of Curves
A family of curves is a group of curves that are each described by a parametrization in which one or more variables are parameters. In general, the parameters have more complexity on the assembly of the curve than an ordinary linear transformation. These families appear commonly in the solution of differential equations. When a constant of integration is added, it is normally modified algebraically until it no longer replicates a plain linear transformation. The order of a differential equation depends on how many uncertain variables appear in the corresponding curve. The order of the differential equation acquired is two if two unknown variables exist in an equation belonging to this family.
XZ Plane
In order to understand XZ plane, it's helpful to understand two-dimensional and three-dimensional spaces. To plot a point on a plane, two numbers are needed, and these two numbers in the plane can be represented as an ordered pair (a,b) where a and b are real numbers and a is the horizontal coordinate and b is the vertical coordinate. This type of plane is called two-dimensional and it contains two perpendicular axes, the horizontal axis, and the vertical axis.
Euclidean Geometry
Geometry is the branch of mathematics that deals with flat surfaces like lines, angles, points, two-dimensional figures, etc. In Euclidean geometry, one studies the geometrical shapes that rely on different theorems and axioms. This (pure mathematics) geometry was introduced by the Greek mathematician Euclid, and that is why it is called Euclidean geometry. Euclid explained this in his book named 'elements'. Euclid's method in Euclidean geometry involves handling a small group of innately captivate axioms and incorporating many of these other propositions. The elements written by Euclid are the fundamentals for the study of geometry from a modern mathematical perspective. Elements comprise Euclidean theories, postulates, axioms, construction, and mathematical proofs of propositions.
Lines and Angles
In a two-dimensional plane, a line is simply a figure that joins two points. Usually, lines are used for presenting objects that are straight in shape and have minimal depth or width.
![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 \( p_1 \), the true proportion of super-experienced bidders who fall prey to the winner’s curse.
\[
\hat{p}_1 = \frac{24}{172} = 0.140 \quad \text{(Type an integer or a decimal. Round to three decimal places as needed.)}
\]
b. Find an estimate of \( p_2 \), the true proportion of less-experienced bidders who fall prey to the winner’s curse.
\[
\hat{p}_2 = \frac{36}{138} = 0.261 \quad \text{(Type an integer or a decimal. Round to three decimal places as needed.)}
\]
c. Construct a 90% confidence interval for \( (\hat{p}_1 - \hat{p}_2) \).
\[
\quad \square \quad \square \quad \boxed{\boxed{\boxed{\boxed{\frown}}}}
\]
\[
\text{(Round to three decimal places as needed.)}
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