Suppose that X N( Icirc frac14 , Iuml 2) and consider the point estimate for some fixed value Icirc frac14 0 Show that this point estimate has a smaller mean square error than X when Icirc frac14 Icirc frac14 0 curren 3 Iuml Explain why it is not surprising that has a smaller mean square error than X when n is close to Icirc frac14 0 X Ho

Question: Suppose that X ~ N(Î¼, Ï2) and consider the point estimate for some fixed value Î¼0. Show that this point estimate has a smaller mean

Suppose that X ~ N(Î¼, Ïƒ2) and consider the point estimate

for some fixed value Î¼0. Show that this point estimate has a smaller mean square error than X when
|Î¼ - Î¼0| ‰¤ ˆš3Ïƒ
Explain why it is not surprising that has a smaller mean square error than X when n is close to Î¼0.

X + Ho

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