Suppose We Have a 0-1 Output for Whether a Bidder

question 49

Multiple Choice

Suppose we have a 0-1 output for whether a bidder wins a contract in a bidding model (0=bidder does not win contract,and 1=bidder wins contract) .From the mean of this output,what can we determine?

• A)The mean number of bidders
• B)The average winning bid
• C)The probability that the bidder will win the contract
• D)The standard deviation of the next highest competitor's bid

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Definitions:

Exponents

Mathematical expressions denoting the power to which a number or variable is raised, indicating repeated multiplication.

Production Function

An equation that specifies the amount of product that can be produced from different quantities of inputs.

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all input factors.

Marginal Products

The additional output that is produced by employing one more unit of a particular input while holding the quantities of all other inputs constant.