A Modified Two Parameter Estimator with Different Forms of Biasing Parameters in the Linear Regression Model

Despite its common usage in estimating the linear regression model parameters, the ordinary least squares estimator often suffers a breakdown when two or more predictor variables are strongly correlated. This study proposes an alternative estimator to the OLS and other existing ridge-type estimator...

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Main Authors: Abiola T. Owolabi, Kayode Ayinde, Olusegun O. Alabi
Format: Article
Language:English
Published: Nigerian Society of Physical Sciences 2022-12-01
Series:African Scientific Reports
Subjects:
Online Access:https://asr.nsps.org.ng/index.php/asr/article/view/62
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author Abiola T. Owolabi
Kayode Ayinde
Olusegun O. Alabi
author_facet Abiola T. Owolabi
Kayode Ayinde
Olusegun O. Alabi
author_sort Abiola T. Owolabi
collection DOAJ
description Despite its common usage in estimating the linear regression model parameters, the ordinary least squares estimator often suffers a breakdown when two or more predictor variables are strongly correlated. This study proposes an alternative estimator to the OLS and other existing ridge-type estimators to tackle the problem of correlated regressors (multicollinearity). The properties of the proposed estimator were derived, and six forms of biasing parameter k (generalized, median, mid-range, arithmetic, harmonic and geometric means) were used in the proposed estimator to compare its performance with five other existing estimators through a simulation study. The proposed estimator dominated existing estimators when the mid-range, arithmetic mean, and median versions of k were used. However, the proposed estimator did not perform well when the generalized, harmonic, and geometric mean versions were used.
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institution Kabale University
issn 2955-1625
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language English
publishDate 2022-12-01
publisher Nigerian Society of Physical Sciences
record_format Article
series African Scientific Reports
spelling doaj-art-3481ef5410e8409e9e7bbf26872d9d432025-08-20T03:31:34ZengNigerian Society of Physical SciencesAfrican Scientific Reports2955-16252955-16172022-12-011310.46481/asr.2022.1.3.6262A Modified Two Parameter Estimator with Different Forms of Biasing Parameters in the Linear Regression ModelAbiola T. OwolabiKayode AyindeOlusegun O. Alabi Despite its common usage in estimating the linear regression model parameters, the ordinary least squares estimator often suffers a breakdown when two or more predictor variables are strongly correlated. This study proposes an alternative estimator to the OLS and other existing ridge-type estimators to tackle the problem of correlated regressors (multicollinearity). The properties of the proposed estimator were derived, and six forms of biasing parameter k (generalized, median, mid-range, arithmetic, harmonic and geometric means) were used in the proposed estimator to compare its performance with five other existing estimators through a simulation study. The proposed estimator dominated existing estimators when the mid-range, arithmetic mean, and median versions of k were used. However, the proposed estimator did not perform well when the generalized, harmonic, and geometric mean versions were used. https://asr.nsps.org.ng/index.php/asr/article/view/62Ridge estimator, Liu estimator, Multicollinearity, Mean square error, Kibria-Lukman estimator, Prior iInformation
spellingShingle Abiola T. Owolabi
Kayode Ayinde
Olusegun O. Alabi
A Modified Two Parameter Estimator with Different Forms of Biasing Parameters in the Linear Regression Model
African Scientific Reports
Ridge estimator, Liu estimator, Multicollinearity, Mean square error, Kibria-Lukman estimator, Prior iInformation
title A Modified Two Parameter Estimator with Different Forms of Biasing Parameters in the Linear Regression Model
title_full A Modified Two Parameter Estimator with Different Forms of Biasing Parameters in the Linear Regression Model
title_fullStr A Modified Two Parameter Estimator with Different Forms of Biasing Parameters in the Linear Regression Model
title_full_unstemmed A Modified Two Parameter Estimator with Different Forms of Biasing Parameters in the Linear Regression Model
title_short A Modified Two Parameter Estimator with Different Forms of Biasing Parameters in the Linear Regression Model
title_sort modified two parameter estimator with different forms of biasing parameters in the linear regression model
topic Ridge estimator, Liu estimator, Multicollinearity, Mean square error, Kibria-Lukman estimator, Prior iInformation
url https://asr.nsps.org.ng/index.php/asr/article/view/62
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