Question: 14.6 In Exercise 14.5(b), suppose you predict Y using Y>2 instead of Y. a. Compute the bias of the prediction. b. Compute the mean of

14.6 In Exercise 14.5(b), suppose you predict Y using Y>2 instead of Y.

a. Compute the bias of the prediction.

b. Compute the mean of the prediction error.

c. Compute the variance of the prediction error.

d. Compute the MSPE of the prediction.

e. Does Y>2 produce a prediction with a lower MSPE than the Y prediction?

f. Suppose μ = 10 (instead of μ = 2). Does Y>2 produce a prediction with a lower MSPE than the Y prediction?

g. In a realistic setting, the value of μ is unknown. What advice would you give someone who is deciding between using Y and Y>2?

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