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Modifying Two-Parameter Ridge Liu Estimator Based on Ridge Estimation

Author(s)
Tarek Omara Department of statistics, Mathematics and Insurance, Faculty of commerce, Kafrelsheikh University, Egypt
Abstract
In this paper, we introduce the new biased estimator to deal with the problem of multicollinearity. This estimator is considered a modification of Two-Parameter Ridge-Liu estimator based on ridge estimation. Furthermore, the superiority of the new estimator than Ridge, Liu and Two-Parameter Ridge-Liu estimator were discussed. We used the mean squared error matrix (MSEM) criterion to verify the superiority of the new estimate. In addition to, we illustrated the performance of the new estimator at several factors through the simulation study.
Publication Details
Page(s) 881-890
DOI DOI not available
Published Journal: Pakistan Journal of Statistics and Operation Research, Volume: 15, Issue: 4, Year: 2019

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Keywords
Multicollinearity, Two-Parameter Ridge Liu Estimator (TLE), Mean Squared Error Matrix (MSEM)., Liu Estimator (LE), Modify Two-Parameter Ridge-Liu Estimator (TRLE), Ridge estimator (RE)
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