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 $100 from the auction she can infer that
A)Both the bidders were high value bidders
B)Both the bidders were low value bidders
C)One of the bidders was high value,while the other was low value
D)All of the above

Question

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 $100 from the auction she can infer that
A)​Both the bidders were high value bidders
B)Both the bidders were low value bidders
C)One of the bidders was high value,while the other was low value
D)​All of the above

Quizplus · Accepted Answer

If Anna receives $100 from the auction, it implies that both bidders were willing to pay up to that amount, indicating they both had a high value for the teacup. In auctions, the final price often reflects the valuation of the second-highest bidder (plus a bid increment), so for the price to reach $100, both bidders must value it at least that much, suggesting they are both high-value bidders.

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