Question: In Example 1, suppose it is desired to estimate e under squared-error loss, and that, for robustness reasons, it is deemed desirable to use a
In Example 1, suppose it is desired to estimate e under squared-error loss, and that, for robustness reasons, it is deemed desirable to use a limited translation estimator, instead of the posterior mean μ(x) = (400+9x)/13. Suppose that an increase by 20% over the (minimax) risk of o² = 100 is deemed to be allowable. Find the limited translation estimator which achieves this limit, determine its Bayes risk, and evaluate the estimate for x = 115.
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