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There are 100 bidders in an English auction. A random sample of 40 bidders shows the following reservation prices:
Number of Bidders Reservation Price
1 $10
3 $20
6 $30
5 $40
8 $50
6 $60
7 $70
3 $80
1 $100
Assume the bidding distribution is normal.
a. What is the mean value of bids across the 100 bidders?
b. What is the probability of a bid being less than $80?
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If the employer offers a salary equal to the average productivity in the population, what will be the employer' s per-employee profit?
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