Question: 14.7 In Exercise 14.5(b), suppose you predict Y using Y - 1 instead of Y. a. Compute the bias of the prediction. b. Compute the

14.7 In Exercise 14.5(b), suppose you predict Y using Y - 1 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 - 1 produce a prediction with a lower MSPE than the Y prediction?

f. Does Y - 1 produce a prediction with a lower MSPE than the Y>2 prediction from Exercise 14.6?

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