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

question 48

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 we can tell:

• A) the number of times the bidder wins the contract
• B) the number of times the bidder does not win the contract
• C) the probability that the bidder will win the contract
• D) the probability that the bidder will not win the contract
• E) None of these options

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Definitions:

Price Skimming

A pricing strategy involving setting an initially high price before gradually lowering it over time as the product's novelty wears off.