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# Suppose that a persons score X on a certain examination

ISBN: 9780321500465 233

## Solution for problem 7 Chapter 4.5

Probability and Statistics | 4th Edition

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Probability and Statistics | 4th Edition

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Problem 7

Suppose that a persons score X on a certain examination will be a number in the interval 0 X 1 and that X has a continuous distribution for which the p.d.f. is as follows: f (x) = x + 1 2 for 0 x 1, 0 otherwise. Determine the prediction of X that minimizes (a) the M.S.E. and (b) the M.A.E.

Step-by-Step Solution:
Step 1 of 3

#check assumptions to do linear regression on data to predict demand data=read.csv("demand-price-advertisement.csv") #check equal variance on the errors #we will use all observations with ad=1 in one group #remaining observation in second group sub1=data[1:11,] sub2=data[12:22,] m1=lm(demand~price, sub1) m2=lm(demand~price, sub2) MSE1=(summary(m1)\$sigma)^2 MSE2=(summary(m2)\$sigma)^2...

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Suppose that a persons score X on a certain examination

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