Mathematics
5 years ago

Centering in regression models ineffective under severe collinearity, study finds.

International journal of statistics and applications
Second Order Regression with Two Predictor Variables Centered on Mean in an Ill Conditioned Model
Ijomah Maxwell Azubuike

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Centering predictor variables in a regression model can help reduce collinearity, but its effectiveness depends on how correlated the variables are. A study using simulations found that centering can greatly reduce collinearity initially, but it doesn't help much when collinearity is severe. So, using centering to deal with collinearity in regression models may not be very helpful when the variables are highly correlated.