Determining the Effect of Some Biasing Parameter Selection Methods for the Two Stage Ridge Regression Estimator

The useof biased estimation techniques is inevitable in connection withmulticollinearity. Two stage ridge estimator is a pioneer biased estimatorwhich is use to recover the problems that are originated from themulticollinearity. The noteworthy issue regarding two stage ridge estimator isselection of...

Full description

Saved in:
Bibliographic Details
Main Authors: Selma Toker, Nimet Özbay
Format: Article
Language:English
Published: Sakarya University 2018-12-01
Series:Sakarya Üniversitesi Fen Bilimleri Enstitüsü Dergisi
Subjects:
Online Access:https://dergipark.org.tr/tr/download/article-file/551928
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The useof biased estimation techniques is inevitable in connection withmulticollinearity. Two stage ridge estimator is a pioneer biased estimatorwhich is use to recover the problems that are originated from themulticollinearity. The noteworthy issue regarding two stage ridge estimator isselection of its biasing parameter. This article investigates several methodson selection of the biasing parameter of the two stage ridge estimator based onthe works in the literature related to ridge estimator in a linear regressionmodel. To demonstrate the best estimators of the biasing parameter, a MonteCarlo experiment is conducted. The utility of the proposed estimators of thebiasing parameter for two stage ridge estimator is observed in terms of meansquare error criterion.
ISSN:2147-835X