Practical Treatment of the Multicollinearity: The Optimal Ridge Method and the Modified OLS
The paper discusses the applicability of the two main methods for solving the linear regression (LR) problem in the presence of multicollinearity – the OLS and the ridge methods. We compare the solutions obtained by these methods with the solution calculated by the Modified OLS (MOLS) [1; 2]. Like t...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
PH "INZHEK"
2021-03-01
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| Series: | Problemi Ekonomiki |
| Subjects: | |
| Online Access: | https://www.problecon.com/export_pdf/problems-of-economy-2021-1_0-pages-155_168.pdf |