8. basics of linear model Return again to Example 15.2. Recall that with equal variances and independence this can be interpreted as random sampling the manager’s performance. Let n be the size of the sample. Example 15.1 has n = 1, while Example 15.2 has n = 2. Determine an optimal contract for the n = 3, 4 and 5 cases. Write a short paragraph explaining your finding.