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Biased Adjusted Poisson Ridge Estimators-Method and Application
Jönköping University, Jönköping International Business School, JIBS, Statistics.ORCID iD: 0000-0003-0279-5305
Jönköping University, Jönköping International Business School, JIBS, Statistics.ORCID iD: 0000-0002-4535-3630
Univ Sargodha, Dept Stat, Sargodha, Pakistan.
Florida Int Univ, Dept Math & Stat, Miami, FL, USA.
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2020 (English)In: Iranian Journal of Science and Technology Transaction A: Science, ISSN 1028-6276, Vol. 44, p. 1775-1789Article in journal (Refereed) Published
Abstract [en]

Mansson and Shukur (Econ Model 28:1475-1481, 2011) proposed a Poisson ridge regression estimator (PRRE) to reduce the negative effects of multicollinearity. However, a weakness of the PRRE is its relatively large bias. Therefore, as a remedy, Turkan and Ozel (J Appl Stat 43:1892-1905, 2016) examined the performance of almost unbiased ridge estimators for the Poisson regression model. These estimators will not only reduce the consequences of multicollinearity but also decrease the bias of PRRE and thus perform more efficiently. The aim of this paper is twofold. Firstly, to derive the mean square error properties of the Modified Almost Unbiased PRRE (MAUPRRE) and Almost Unbiased PRRE (AUPRRE) and then propose new ridge estimators for MAUPRRE and AUPRRE. Secondly, to compare the performance of the MAUPRRE with the AUPRRE, PRRE and maximum likelihood estimator. Using both simulation study and real-world dataset from the Swedish football league, it is evidenced that one of the proposed, MAUPRRE ((k) over cap (q4)) performed better than the rest in the presence of high to strong (0.80-0.99) multicollinearity situation.

Place, publisher, year, edition, pages
Springer, 2020. Vol. 44, p. 1775-1789
Keywords [en]
Maximum likelihood estimator, Multicollinearity, Poisson ridge regression, Modified almost unbiased ridge estimators, Mean square error
National Category
Probability Theory and Statistics
Identifiers
URN: urn:nbn:se:hj:diva-50833DOI: 10.1007/s40995-020-00974-5ISI: 000574800300001PubMedID: 33041601Scopus ID: 2-s2.0-85092047077Local ID: HOA;intsam;1476651OAI: oai:DiVA.org:hj-50833DiVA, id: diva2:1476651
Available from: 2020-10-15 Created: 2020-10-15 Last updated: 2021-02-25Bibliographically approved

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Qasim, MuhammadMånsson, KristoferSjölander, Pär

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