In 1971 Jones proposed an approximate procedure for finding that linea
r combination of scores which has maximum heritability in a twin sampl
e. I give an exact small-sample procedure. I point out two problems: s
uch procedures can overoptimize the heritability by capitalizing on ch
ance, and confidence intervals and significance tests are needed. I gi
ve an approach using James-Stein shrinkage estimation and bootstrapped
standard errors to address these problems. It appears that confidence
intervals may be quite broad. To reduce the width of the confidence i
ntervals, one can accept some small-sample bias in exchange for smalle
r sampling errors. The James-Stein approach to estimating coefficients
is used to achieve reduced confidence interval width. I illustrate wi
th a computational example using personality data.