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190382

REMEDY OF EFFECTS OF MULTICOLLINEARITY IN MULTIPLE LINEAR REGRESSION MODEL

Article

Last updated: 05 Jan 2025

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Subjects

-

Tags

Agricultural Economics and Management Sciences

Abstract

Assuming that there is no complete linear relationship between the
independent variables in the multiple linear regression models leads to the
multicollinearity problem. Some undesirable effects, according to this problem,
resulting imprecise estimators of the equation, and lower ability of the statistical
model to predict the dependent variable in the future. The study aims at
investigating the nature and causes of the multicollinearity problem, methods of
detection and remedy of it using the Ridge regression method as an effective way
of mitigating the effects of multicollinearity.
The study found that the main effect of the multicollinearity problem is
that it may change the signs, significance and estimators of the explanatory
variables. Thus increasing the value of the coefficient of multiple correlation and
the coefficient of determination at a value greater than their true value.
Consequently the low confidence in the results obtained from the statistical
analysis and the low predictability of the relationship between independent and
dependent variables. The study recommended detecting multicollinearity and
identify its causes, and remedy of it using Ridge regression approach.

DOI

10.21608/fjard.2019.190382

Authors

First Name

M. A.

Last Name

Gad

MiddleName

-

Affiliation

Cent. Lab. for Design and Stat. Analysis Res., ARC

Email

-

City

-

Orcid

-

First Name

H. F. M.

Last Name

Hussein

MiddleName

-

Affiliation

Cent. Lab. for Design and Stat. Analysis Res., ARC

Email

-

City

-

Orcid

-

Volume

33

Article Issue

1

Related Issue

27224

Issue Date

2019-01-01

Receive Date

2021-08-21

Publish Date

2019-01-01

Page Start

77

Page End

91

Print ISSN

1110-7790

Online ISSN

2805-2528

Article File

FJARD_Volume 33_Issue 1_Pages 77-91.pdf

PDF . 3.8MB

Link

https://fjard.journals.ekb.eg/article_190382.html

Detail API

https://fjard.journals.ekb.eg/service?article_code=190382

Order

20

Type

Research articles.

Type Code

1,920

Publication Type

Journal

Publication Title

Fayoum Journal of Agricultural Research and Development

Publication Link

https://fjard.journals.ekb.eg/

MainTitle

REMEDY OF EFFECTS OF MULTICOLLINEARITY IN MULTIPLE LINEAR REGRESSION MODEL

Details

Type

Article

Created At

23 Jan 2023