Mathematics
9 years ago

New Method Detects Multicollinearity in Linear Regression Models, Improving Accuracy

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Communications for Statistical Applications and Methods
Scree Diagram for Detecting Multicollinearity and Estimating Ridge Constant in Linear Regression Model
Dae‐Heung Jang

Paper Summary

Multicollinearity in linear regression models can be a problem, but ridge regression can help. A scree diagram is a useful tool for spotting multicollinearity and figuring out the ridge constant in linear regression models.