An economist at Vanderbilt University devised a study to compare different types of online auctions. In one experiment he compared a Dutch auction to a first-price sealed bid auction. In the Dutch auction the item for sale starts at a very high price and is lowered gradually until someone finds the price low enough to buy. In the first-price sealed bid auction each bidder submits a single sealed bid before a particular deadline. After the deadline, the person with the highest bid wins. The researcher auctioned off collectible trading cards from the game Magic: The Gathering. He placed pairs of identical cards up for auction; one would go into the Dutch auction and the other to the first-price sealed bid auction. He then looked at the difference in the prices he received on the pair. He repeated this for a total of 88 pairs. Required:
a. Explained why the data should be analyzed using paired samples as opposed to two independent samples.
b. What makes a pair?
c. What is the explanatory variable? Is it categorical or quantitative?
d. What is the response variable? Is it categorical or quantitative?