Artificial Intelligence for Big Data
by Anand Deshpande, Manish Kumar, Albenzo Coletta, Giancarlo Zaccone
Ridge regression
With stepwise regression, we now have a set of independent variables that contribute well to the value of the dependent variable. If two or more predictors are related to each other with a near-linear relationship, we come across a problem called multicollinearity, for example, if we are modeling the weather data where the input data contains the altitude of the location and the average rainfall as predictor variables. These two variables are linearly related. The amount of rainfall increases with the increase in altitude. This multicollinearity leads to inaccurate estimates for the regression coefficients, leading to an increase in the standard errors, and hence degrades the model's predictability.
Multicollinearity can ...
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