We can see that the standard error of the score has larger variability when the school is smaller. This is a basic statistical reality we learned in the probability and inference sections. In fact,...

We can see that the standard error of the score has larger variability when the school is smaller. This is a basic statistical reality we learned in the probability and inference sections. In fact, note that 4 of the top 10 schools are in the top 10 schools based on the exam score.

Notice that this improves things a bit. The number of small schools that are not highly ranked is now 4. Is there a better λ? Find the λ that minimizes the RMSE = 1/100∑100 i=1(quality − estimate)
²
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