Methodological exposition demonstrates the utility of ridge regression and ridge traces in nonorthogonal multifactor data, indicating superior performance over ordinary least squares.
This paper is an exposition of the use of ridge regression methods. Two examples from the literature are used as a base. Attention is focused on the RIDGE TRACE which is a two-dimensional graphical procedure for portraying the complex relationships in multifactor data. Recommendations are made for obtaining a better regression equation than that given by ordinary least squares estimation. This article is referred to by:Ridge Regression: A Historical Context
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Hoerl et al. (1970) studied this question.
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