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What is CPE calculated using ads ranking score of itself and the ad below it?

I understand that for advertisers, CPE = total budget / # of engagement.
But here for the estimated CPE, why is it: ad rank of ad below / ad rank score + 0.01?

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Makes no sense to me initially. Then I figured that CPC for each ad is actually determined by the ads platform based on rules. Total budget / # of engagement is the end result. The formula showed in the course is the CPC formula used by ads platform to determine each ad’s cost in real time.


Course: Grokking the Machine Learning Interview - Learn Interactively
Lesson: Architectural Components - Grokking the Machine Learning Interview

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