Performance of ridge regression estimator methods on small sample size by varying correlation coefficients: a simulation study

• Main Authors: Fitrianto, Anwar, Lee, Ceng Yik
• Format: Article
• Published: Science Publications 2014
• Online Access: http://psasir.upm.edu.my/id/eprint/34880/; http://thescipub.com/abstract/10.3844/jmssp.2014.25.29

When independent variables have high linear correlation in a multiple linear regression model, we can have wrong analysis. It happens if we do the multiple linear regression analysis based on common Ordinary Least Squares (OLS) method. In this situation, we are suggested to use ridge regression esti...