On Comparison of Some Ridge Parameters in Ridge Regression

Abstract

In this article, a new approach to obtain the ridge parameter introduces for the multiple linear regression model suffers from the problem of multicollinearity. Furthermore, we compare the proposed ridge parameter with the other well-known ridge-parameters through ridge estimators evaluated elsewhere in terms of mean squares error (MSE) criterion. Finally, a numerical example and simulation study has been conducted to illustrate the optimality of the proposed ridge parameter.