METODE RIDGE REGRESSION DALAM MENGATASI DAMPAK MULTIKOLINEARITAS PADA PRODUK DOMESTIK REGIONAL BRUTO PROVINSI RIAU
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Date
2021-04
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Abstract
Multiple linear regressions are analytical methods used to determine the relationship
between a variable and another. One of the assumptions in multiple linear regression
analysis is the absence of multicolinearity in the regression model. If there is a
multicolinearity problem, there are several ways that can be used by using the ridge
regression method which is a modification of the smallest squared method by adding the
a bias constanta c. This study aims to suspect ridge regression parameters using Hoerl,
Kennard & Baldwin and Lawless &Wang methods to address multicolinearity problems
in the analysis of economic factors in Riau Province. The factors tested in this study are
the oil and gas sector into gross regional domestic product commodities, other factors
namely exports, consumer price index and rupiah exchange rate. In practice done by
comparing two methods of bias rated values Hoerl, Kennard & Baldwin and metohods
Lawless & Wang. . The study showed that there is at least one ridge regression method
that has MSE, smaller and and value, adjusted larger than Hoerl Kennard &
Baldwin method, is obtained Lawless & Wang ridge regression method with bias =
0,288.
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Keywords
Multiple linear regression, multicolinearity, ridge regression, Hoerl Kennard & Baldwin method, Lawless & Wang method