Assume that Y is normally distributed N? (??, ?2?). Moving from the mean ?(??) 1.96 standard deviations to the left and 1.96 standard deviations to the? right, then the area under the normal p.d.f.? is:

If a forecast made using all available information is NOT perfectly accurate, then it is

A) still a rational expectation. B) not a rational expectation. C) an adaptive expectation. D) a second-best expectation.

In an auction where the bidders values are $740, $700, $660, $650, $400, $325 and $300, the highest three bidders decide to form a bid-rigging cartel. What would the winning bid be in this auction?

a. $741 b. $701 c. $651 d. $631