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This paper considers the performance of the unbiased ridge estimator (Crouse et al. Commun Stat Theory Methods 24:2341–2354, 1995) over the ordinary least squares estimator of the regression parameter using the Pitman’s closeness criterion. Then, we introduce a new variance components estimator based on the unbiased ridge estimator. Furthermore we show that the new variance components estimator has...
Multicollinearity among the explanatory variables seriously effects the maximum likelihood estimator in linear regression models which results in too large estimates in absolute value and in large variance-covariance matrix. The adverse effects of multicollinearity on parameter estimation in generalized linear models are also explored by various authors in the case of maximum likelihood estimation...
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