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journal article·2023-11-01Open access

On the performance of two-parameter ridge estimators for handling multicollinearity problem in linear regression: Simulation and application

Muhammad Shakir Khan, Amjad Ali, Muhammad Suhail, Fuad A. Awwad, Emad A. A. Ismail, Hijaz Ahmad

AIP Advances· Volume 13· Issue 11
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Source abstract

Abstract

The inability of ordinary least square estimators against multicollinearity has paved the way for the development of various ridge-type estimators, which are recently classified as one-parameter and two-parameter ridge estimators. In this paper, we offer some efficient two-parameter ridge estimators and evaluate their performance through a simulation study by using the minimum mean square error criterion. Under most of the simulation conditions, our proposed estimators outperformed the existing estimators. Finally, two real-life datasets are used to demonstrate the applications of our proposed estimators.
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Research context

OpenAlex topics: Advanced Statistical Methods and Models · Advanced Statistical Process Monitoring · Statistical Methods and Inference

SciVX discovery tags are terminology-based. OpenAlex topics are source-provided classifications.

Affiliations

Islamia College Peshawar 1 , Peshawar, Pakistan

Directorate General Livestock & Dairy Development Department (Research Wing) Peshawar 2 , Khyber Pakhtunkhwa, Pakistan

Department of Statistics, The University of Agriculture, Peshawar Amir Muhammad Khan Campus 3 , Mardan, Pakistan

Department of Quantitative Analysis, College of Business Administration, King Saud University 4 , P.O. Box 71115, Riyadh 11587, Saudi Arabia

Section of Mathematics, International Telematic University Uninettuno 5 , Corso Vittorio Emanuele II, Roma, Italy

Near East University, Operational Research Center in Healthcare 6 , Near East Boulevard, PC: 99138 Nicosia/Mersin 10, Türkiye

Center for Applied Mathematics and Bioinformatics, Gulf University for Science and Technology 7 , Kuwait

Department of Computer Science and Mathematics, Lebanese American University, Beirut 8 , Lebanon

Funding

King Saud University

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