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This paper presents ridge regression methods and their application to multifactor data analysis.

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February 1, 1970

Ridge Regression: Applications to Nonorthogonal Problems

Key Points

This paper presents ridge regression methods and their application to multifactor data analysis.
Utilizes two examples from the literature to demonstrate ridge regression techniques.
Focus on the RIDGE TRACE graphical procedure to visualize relationships in data.
Recommends improvements to regression equations over ordinary least squares estimation.

Abstract

Abstract 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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