Q1.

Read the article titled Stein’s Paradox in Statistics.

5 points

Briefly describe your thoughts on the article.

5 points

How does this article illustrate the concept of shrinkage?

5 points

Summarize Stein’s Paradox.

Q2. (15 points)

Generate data from a two-dimensional hierarchical normal model (e.g. students within a school). Write code for a Gibbs sampler and convince me that your code returns the correct answer.

Q3. (15 points)

Using the Seattle housing dataset http://www.math.montana.edu/ahoegh/teaching/stat532/data/SeattleHousing.csv, build a regression model to predict price. This does not have to be a “complete analysis,” but include at least one continuous and categorical predictor.