Comparison between best subset and lasso regression on consumer price index Malaysia

This research is aimed to determine the factors contributing to the prediction of the total Consumer Price Index (CPI) in Malaysia through model selection using two methods which are the best subset and LASSO regression. The outliers are identified using the leverage values and studentized delet...

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Main Authors: Gopal Pillay, Khuneswari A/P, Ravieb, Tivya, Mohd Padzil, Siti Aisyah
Format: Conference or Workshop Item
Language:English
Published: 2021
Subjects:
Online Access:http://eprints.uthm.edu.my/6507/
http://eprints.uthm.edu.my/6507/1/P13550_499a158fa53fb23c456f577fae1fa84c.pdf
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author Gopal Pillay, Khuneswari A/P
Ravieb, Tivya
Mohd Padzil, Siti Aisyah
author_facet Gopal Pillay, Khuneswari A/P
Ravieb, Tivya
Mohd Padzil, Siti Aisyah
author_sort Gopal Pillay, Khuneswari A/P
building UTHM Institutional Repository
collection Online Access
description This research is aimed to determine the factors contributing to the prediction of the total Consumer Price Index (CPI) in Malaysia through model selection using two methods which are the best subset and LASSO regression. The outliers are identified using the leverage values and studentized deleted residuals while the multicollinearity variables will undergo progressive elimination identified through Variance Inflation Factor (VIF) values. Both methods were compared using the Mean Square Error of Prediction (MSE(P)) to find the best approach to display the CPI data. The model with the smallest MSE(P) will be chosen as the best model. The result showed that the MSE(P) of the best model using both the best subset regression and LASSO regression is almost the same. Therefore, the model selection using LASSO regression will be chosen as the best approach due to the simple process in identifying the best model. The best LASSO model consists of nine major categories such as food and non-alcoholic beverages (X1), alcoholic beverages and tobacco (X2), clothing and footwear (X3), transport (X7), communication (X8), recreation service and culture (X9), education (X10), restaurants and hotels (X11), miscellaneous goods and services (X12).
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format Conference or Workshop Item
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institution Universiti Tun Hussein Onn Malaysia
institution_category Local University
language English
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publishDate 2021
recordtype eprints
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spelling uthm-65072022-02-28T00:25:29Z http://eprints.uthm.edu.my/6507/ Comparison between best subset and lasso regression on consumer price index Malaysia Gopal Pillay, Khuneswari A/P Ravieb, Tivya Mohd Padzil, Siti Aisyah HB221-236 Price This research is aimed to determine the factors contributing to the prediction of the total Consumer Price Index (CPI) in Malaysia through model selection using two methods which are the best subset and LASSO regression. The outliers are identified using the leverage values and studentized deleted residuals while the multicollinearity variables will undergo progressive elimination identified through Variance Inflation Factor (VIF) values. Both methods were compared using the Mean Square Error of Prediction (MSE(P)) to find the best approach to display the CPI data. The model with the smallest MSE(P) will be chosen as the best model. The result showed that the MSE(P) of the best model using both the best subset regression and LASSO regression is almost the same. Therefore, the model selection using LASSO regression will be chosen as the best approach due to the simple process in identifying the best model. The best LASSO model consists of nine major categories such as food and non-alcoholic beverages (X1), alcoholic beverages and tobacco (X2), clothing and footwear (X3), transport (X7), communication (X8), recreation service and culture (X9), education (X10), restaurants and hotels (X11), miscellaneous goods and services (X12). 2021 Conference or Workshop Item PeerReviewed text en http://eprints.uthm.edu.my/6507/1/P13550_499a158fa53fb23c456f577fae1fa84c.pdf Gopal Pillay, Khuneswari A/P and Ravieb, Tivya and Mohd Padzil, Siti Aisyah (2021) Comparison between best subset and lasso regression on consumer price index Malaysia. In: AIP Conference Proceedings, 18 Nov 2021. https://doi.org/10.1063/5.0075657
spellingShingle HB221-236 Price
Gopal Pillay, Khuneswari A/P
Ravieb, Tivya
Mohd Padzil, Siti Aisyah
Comparison between best subset and lasso regression on consumer price index Malaysia
title Comparison between best subset and lasso regression on consumer price index Malaysia
title_full Comparison between best subset and lasso regression on consumer price index Malaysia
title_fullStr Comparison between best subset and lasso regression on consumer price index Malaysia
title_full_unstemmed Comparison between best subset and lasso regression on consumer price index Malaysia
title_short Comparison between best subset and lasso regression on consumer price index Malaysia
title_sort comparison between best subset and lasso regression on consumer price index malaysia
topic HB221-236 Price
url http://eprints.uthm.edu.my/6507/
http://eprints.uthm.edu.my/6507/
http://eprints.uthm.edu.my/6507/1/P13550_499a158fa53fb23c456f577fae1fa84c.pdf