Abstract: Method of least squares estimate gives imprecise estimates in handling numerous multi-collinear explanatory variables. After detecting the presence of multi-co linearity, techniques of ridge and principal components regressions are employed to study the impacts of explanatory variables on dependent variable. Using ridge regression the degree of multi-co linearity is reduced only but the technique of principal components regression gives better estimate with greater degree. This paper discusses about the application and comparison of the techniques of ridge and principal components regressions for the estimation of parameter vector together with the conflicting claim on the discovery of the technique of ridge regression based on available documents.

Keywords: Conflicting Claim on Discovery of Ridge Regression, Multi-co linearity, Principal Components Regression and Ridge Regression.

PDF | DOI: 10.17148/IARJSET.2018.578

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