A simple continuum regression approach

Abstract

A continuum regression approach based on two parameters, namely the number of latent variables to be introduced in the model and a tuning parameter is proposed. A noteworthy feature of this approach is that it is straightforward and simple. It brings several procedures under the same umbrella. These procedures encompass Ordinary least squares (OLS) regression, Partial least squares regression (PCR) and Ridge regression. Interesting properties related to the method are also discussed. This makes it possible to highlight the rationale behind the method of analysis by showing that it aims at realizing a compromise between achieving a good fit and setting up a stable model. Copyright © 2006 John Wiley & Sons, Ltd.