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:

Type I Error

The mistaken dismissal of a correct null hypothesis, referred to as a "false positive."

Type II Error

A statistical mistake made by failing to reject a false null hypothesis, also known as a false negative.

Null Hypothesis

A default hypothesis that there is no significant difference or relationship, serving as the basis for statistical testing.

Alternative Hypothesis

It is a statement that suggests there is a difference or effect in the population parameters being studied, contradicting the null hypothesis.