Transcription of Chapter 335 Ridge Regression - NCSS
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Chapter 335 Ridge Regression - NCSS
NCSS Statistical Software Chapter 335. Ridge Regression Introduction Ridge Regression is a technique for analyzing multiple Regression data that suffer from multicollinearity. When multicollinearity occurs, least squares estimates are unbiased, but their variances are large so they may be far from the true value. By adding a degree of bias to the Regression estimates, Ridge Regression reduces the standard errors. It is hoped that the net effect will be to give estimates that are more reliable. Another biased Regression technique, principal components Regression , is also available in NCSS. Ridge Regression is the more popular of the two methods. Multicollinearity Multicollinearity, or collinearity, is the existence of near-linear relationships among the independent variables. For example, suppose that the three ingredients of a mixture are studied by including their percentages of the total.
matter what sampling technique is used. Many manufacturing or service processes have constraints on independent variables (as to their range), either physically, politically, or legally, which will create multicollinearity. 3. Over-defined model. Here, there are more variables than observations. This situation should be avoided.
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