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1 article for “multicollinearity”
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Performance of Some Modified Ordinary Ridge Regression Estimators
Abstract: In multiple linear regressions, if the data suffer from severe multicollinearity, then the ordinary least squares (OLS) method become more sensitive to it, and in such a case OLS could yield wrong sign for some of the regression coefficients. Therefore, when such a situation arises, we could use one of the biased regression methods viz., ridge regression, principal component regression, and so on, as an alternative method to OLS. This …
Published in Research & Reviews : Journal of Statistics Read article