Which of the following best explains why the RMSE in exercise 4 is so much lower than exercise 1. A. It is just luck. If we do it again, it will be larger. B. The central limit theorem tell us the...

Which of the following best explains why the RMSE in exercise 4 is so much lower than exercise 1.

A. It is just luck. If we do it again, it will be larger.

B. The central limit theorem tell us the RMSE is normal.

C. When we increase the correlation between x and y, x has more predictive power and thus provides a better estimate of y. This correlation has a much bigger effect on RMSE than n. Large n simply provide us more precise estimates of the linear model coefficients.

D. These are both examples of regression, so the RMSE has to be the same.