Anna's Antiques expects to get two bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If Anna receives $71 from the auction,she can infer that

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If both bidders were high-value bidders, then the teacup would have sold for at least $100, so Anna would have received more than $71. Similarly, if both were low-value bidders, the teacup would have sold for at most $70, so Anna wouldn't have received $71. Therefore, we can infer that one of the bidders was high-value and the other was low-value, resulting in a sale price of $71.

Anna's Antiques Expects to Get Two Bidders for the Unique