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Unformatted text preview: • Variables • Assumptions o All geologists are experts o 4 adjustments total • Second Assumptions slide • Given Data • Errors o Represents the difference between each individual companies signal and the… • Given Data (again?) o Mean, Standard Dev, • Frequency Distribution • Pdf errors • Strategy 1 o Bid the signal o Advantage=quick answer, Disdabantage, almost always negative profit • 2 o Bid the signal, winners curse o Winners curse in real terms…winners usually tend to overpay…winners curse usually has bid that’s too high o On average, expect 0 profit • 3 o signal-wc-wb o excpect profit to be = to winners blessing • Disadvantage of 2 & 3 (and advantage) • 4 o advantage, the best value of success is the best value of an adjustment • 5 o advantage=observe changes without any errors o disadvantage=only adjusts by winners curse • 6 Presentation 3 • Company Goals • Objectives • Same same same...
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- Spring '10
- Standard Deviation, Frequency distribution, Summary statistics, Disdabantage, Bid signal minu