Question

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 185 bids by super-experienced bidders, 26 winning bids were above the item's expected value, and of the bids by the 138 less-experienced bidders, 37 winning bids were above the item's expected value. Complete parts a through d. a. Find an estimate of p1, the true proportion of super-experienced bidders who fall prey to the winner's curse. p?1 = .141 (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. p?2 = .268 (Type an integer or a decimal. Round to three decimal places as needed.) c. Construct a 90% confidence interval for (p?1 - p?2). ( , ) (Round to 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 185 bids by super-experienced bidders, 26 winning bids were above the item's expected value, and of the bids by the 138 less-experienced bidders, 37 winning bids were above the item's expected value. Complete parts a through d.
a. Find an estimate of p1, the true proportion of super-experienced bidders who fall prey to the winner's curse.
p?1 = .141 (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.
p?2 = .268 (Type an integer or a decimal. Round to three decimal places as needed.)
c. Construct a 90% confidence interval for (p?1 - p?2).
( , )
(Round to 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 185 bids by super-experienced bidders, 26 winning bids were above the item's expected value, and of the bids by the 138 less-experienced bidders, 37 winning bids were above the item's expected value. Complete parts a through d.
a. Find an estimate of p1, the true proportion of super-experienced bidders who fall prey to the winner's curse.
p?1 = .141 (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.
p?2 = .268 (Type an integer or a decimal. Round to three decimal places as needed.)
c. Construct a 90% confidence interval for (p?1 - p?2).
( , )
(Round to three decimal places as needed.)

Added by Ruben F.

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