Two Topics in Mathematics and Procurement (Part 2)
Summary
In the 1st part of the paper, I study a method of detecting anomalous
bids in public procurement. I will then give a detailed treatment of
principal component analysis. Next, a statistical method based on
principal components to detect anomalous bids will be described. I
show that under certain assumptions, this statistic follows the non-
central $X2$ distribution. Finally, I give an example based on the data
from a real tender to show how this statistic can detect anomalous
bids. In the 2nd part, I investigate whether bidding performance of 6
companies in 5 tenders organized by 1 tendering entity is influenced
by learning using random effects logistic regression.