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

doi:10.1063/5.0175494

journal article Open Access Nov 01, 2023

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

Muhammad Shakir Khan

AIP Advances Vol. 13 No. 11 · AIP Publishing

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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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Metrics

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Citations

37

References

Details

Published: Nov 01, 2023
Vol/Issue: 13(11)
License: View

Authors

M

Muhammad Shakir Khan

Islamia College Peshawar 1 , Peshawar, Pakistan; Directorate General Livestock & Dairy Development Department (Research Wing) Peshawar 2 , Khyber Pakhtunkhwa, Pakistan

A

Amjad Ali

Islamia College Peshawar 1 , Peshawar, Pakistan

M

Muhammad Suhail

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

F

Fuad A. Awwad

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

E

Emad A. A. Ismail

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

H

Hijaz Ahmad

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 Award: RSPD2023R1060

Cite This Article

Muhammad Shakir Khan, Amjad Ali, Muhammad Suhail, et al. (2023). On the performance of two-parameter ridge estimators for handling multicollinearity problem in linear regression: Simulation and application. AIP Advances, 13(11). https://doi.org/10.1063/5.0175494

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

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