@article{Ward:285721,
      recid = {285721},
      author = {Ward, Clement E. and Choi, Seung-Churl},
      title = {Evaluating Potential Changes in Price Reporting Accuracy},
      address = {1998-04},
      series = {NCCC-134 Applied Commodity Price Analysis, Forecasting,  and Market Risk Management},
      year = {1998},
      abstract = {Non-cash-market transactions for fed cattle have  increased. Price discovery depends in part on the accuracy  of reported cash market prices. Cattlemen and others have  expressed concern that as non-cash-market transactions  increase, reported cash market prices may no longer  accurately reflect supply-demand conditions. Equations  based on Chebyschev's inequality are used in conjunction  with experimental market data from the Fed Cattle Market  Simulator to explore relationships related to price  reporting accuracy for several subpopulations of prices  versus the known population. Price means and variances and  distribution of prices were invariant to number of  transaction prices. Mean prices and variance of prices also  were invariant to number of observations. Only when the  reduction in prices reached 80% was there a significant  relationship between number of observations and two pairs  of variables, i.e., reported price precision and confidence  of a given level of precision. With the exception of the  smallest reduction in transactions, no differences were  found between the subpopulations and population for  reported price precision versus probability of a given  level of precision, for reported price precision versus  estimated number of observations with a given degree of  confidence, and for probability of a given level of  precision versus estimated number of observations with a  given level of precision. Results suggest the possibility  that number of non-reported fed cattle transaction prices  could increase significantly before the industry faces  serious concerns regarding the accuracy of reported prices  certis paribus.},
      url = {http://ageconsearch.umn.edu/record/285721},
      doi = {https://doi.org/10.22004/ag.econ.285721},
}