Ridge regression explained: Regression robust to multicollinearity (Excel)
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Ridge regression explained: Regression robust to multicollinearity (Excel)
What can one do when independent variables in a regression model are non-orthogonal or even near-multicollinear? How to address the issue of multicollinearity and make your regression model robust to it? A common technique is the ridge regression as proposed by Hoerl and Kennard (1970). Today we are learning how to apply ridge regression in ...
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