In this paper we describe a computer intensive method to find the ridge parameter in a prediction oriented linear model. With the help of a factorial experimental design the method is tested and compared to a classical one.

We examined the relationship between maximizing (i.e. seeking the best) versus satisficing (i.e.seeking the good enough) tendencies and forecasting ability in a real-world prediction task: forecasting the outcomes of the 2010 FIFA World Cup. In Studies 1 and 2, participants gave probabilistic...