[Michael Reach]

Just want to check if I have the idea right here:
Deterministic noise means the bias, the difference between the correct target hypothesis, and the possible hypotheses for this hypothesis set. If H' is smaller than H, so it will be in general be less able to get close to the target hypothesis and the deterministic noise will be bigger. At least it can't be less.

However, though the noise is bigger, there is another effect that will often work in the opposite direction. The larger hypothesis set may give us the dubious ability to fit the deterministic noise better. Since we have more hypotheses to choose from, we may fit more of the noise with the larger hypothesis set, and end up worse off.

Does that sound right?