A remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points

The ordinary least squares (OLS) is the widely used method in multiple linear regression model due to tradition and its optimal properties. Nonetheless, in the presence of multicollinearity, the OLS method is inefficient because the standard errors of its estimates become inflated. Many methods have...

Full description

Bibliographic Details
Main Authors: Ismaeel, Shelan Saied, Habshah Midi, Omar, Kurdistan M. Taher
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2024
Online Access:http://journalarticle.ukm.my/23925/
http://journalarticle.ukm.my/23925/1/SE%2014.pdf
_version_ 1848815969744453632
author Ismaeel, Shelan Saied
Habshah Midi,
Omar, Kurdistan M. Taher
author_facet Ismaeel, Shelan Saied
Habshah Midi,
Omar, Kurdistan M. Taher
author_sort Ismaeel, Shelan Saied
building UKM Institutional Repository
collection Online Access
description The ordinary least squares (OLS) is the widely used method in multiple linear regression model due to tradition and its optimal properties. Nonetheless, in the presence of multicollinearity, the OLS method is inefficient because the standard errors of its estimates become inflated. Many methods have been proposed to remedy this problem that include the Jackknife Ridge Regression (JAK). However, the performance of JAK is poor when multicollinearity and high leverage points (HLPs) which are outlying observations in the X- direction are present in the data. As a solution to this problem, Robust Jackknife Ridge MM (RJMM) and Robust Jackknife Ridge GM2 (RJGM2) estimators are put forward. Nevertheless, they are still not very efficient because they suffer from long computational running time, some elements of biased and do not have bounded influence property. This paper proposes a robust Jackknife ridge regression that integrates a generalized M estimator and fast improvised Gt (GM-FIMGT) estimator, in its establishment. We name this method the robust Jackknife ridge regression based on GM-FIMGT, denoted as RJFIMGT. The numerical results show that the proposed RJFIMGT method was found to be the best method as it has the least values of RMSE and bias compared to other methods in this study.
first_indexed 2025-11-15T00:58:26Z
format Article
id oai:generic.eprints.org:23925
institution Universiti Kebangasaan Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T00:58:26Z
publishDate 2024
publisher Penerbit Universiti Kebangsaan Malaysia
recordtype eprints
repository_type Digital Repository
spelling oai:generic.eprints.org:239252024-08-06T02:01:32Z http://journalarticle.ukm.my/23925/ A remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points Ismaeel, Shelan Saied Habshah Midi, Omar, Kurdistan M. Taher The ordinary least squares (OLS) is the widely used method in multiple linear regression model due to tradition and its optimal properties. Nonetheless, in the presence of multicollinearity, the OLS method is inefficient because the standard errors of its estimates become inflated. Many methods have been proposed to remedy this problem that include the Jackknife Ridge Regression (JAK). However, the performance of JAK is poor when multicollinearity and high leverage points (HLPs) which are outlying observations in the X- direction are present in the data. As a solution to this problem, Robust Jackknife Ridge MM (RJMM) and Robust Jackknife Ridge GM2 (RJGM2) estimators are put forward. Nevertheless, they are still not very efficient because they suffer from long computational running time, some elements of biased and do not have bounded influence property. This paper proposes a robust Jackknife ridge regression that integrates a generalized M estimator and fast improvised Gt (GM-FIMGT) estimator, in its establishment. We name this method the robust Jackknife ridge regression based on GM-FIMGT, denoted as RJFIMGT. The numerical results show that the proposed RJFIMGT method was found to be the best method as it has the least values of RMSE and bias compared to other methods in this study. Penerbit Universiti Kebangsaan Malaysia 2024 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/23925/1/SE%2014.pdf Ismaeel, Shelan Saied and Habshah Midi, and Omar, Kurdistan M. Taher (2024) A remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points. Sains Malaysiana, 53 (4). pp. 907-920. ISSN 0126-6039 https://www.ukm.my/jsm/english_journals/vol53num4_2024/contentsVol53num4_2024.html
spellingShingle Ismaeel, Shelan Saied
Habshah Midi,
Omar, Kurdistan M. Taher
A remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points
title A remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points
title_full A remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points
title_fullStr A remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points
title_full_unstemmed A remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points
title_short A remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points
title_sort remedial measure of multicollinearity in multiple linear regression in the presence of high leverage points
url http://journalarticle.ukm.my/23925/
http://journalarticle.ukm.my/23925/
http://journalarticle.ukm.my/23925/1/SE%2014.pdf