Let’s use regularization to pick the best schools. Remember regularization shrinks deviations from the average towards 0. So to apply regularization here, we first need to define the overall average for all schools:
and then define, for each school, how it deviates from that average. Write code that estimates the score above the average for each school but dividing by n + λ instead of n, with n the schools size and λ a regularization parameters. Try λ = 3.
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