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

Question

Quizplus · Accepted Answer

The mean of a 0-1 output represents the probability of the event occurring. Therefore, the mean of whether a bidder wins a contract (0 or 1) represents the probability of the bidder winning the contract.

Suppose We Have a 0-1 Output for Whether a Bidder