Difference between revisions of "Ridge Regression"
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Revision as of 14:50, 7 January 2019
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a technique for analyzing multiple regression data that suffer from multicollinearity. Multicollinearity, or collinearity, is the existence of near-linear relationships among the independent variables. 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.
