The pure shrinkage estimator is defined as (hat{beta}_{s}=c hat{beta}), were (0 leq c leq 1) is a

Question:

The pure shrinkage estimator is defined as $\hat{\beta}_{s}=c \hat{\beta}$, were $0 \leq c \leq 1$ is a constant chosen by the analyst. Describe the kind of shrinkage that this estimator introduces, and compare it with the shrinkage that results from ridge regression. Intuitively, which estimator seems preferable?

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