Please disregard my previous post.
I made a stupid programming error in my code. As I was generating the predictions for each model on the test/validation data sets, I was comparing that output to the wrong "Y" variable. Once corrected, the out of sample errors of questions 2 and 4 are within the options given in question 5.
To those who may be struggling with these questions,
- Remeber that in questions 1 and 2 you train with the first 25 samples of "in.dta" and validate with the last 10 samples. For questions 3 and 4 you do the opposite: train with the last 10 samples and validate with the first 25.
- When you calculate the validation and test set errors, remember to compare each model's output with the correct Y's.