Burt, Oscar R.; Frank, Michael D.; Beattie, Bruce R. - In: Western Journal of Agricultural Economics 12 (1987) 02
A heuristic criterion for choosing an acceptable level of bias in ridge regression is presented. The criterion is based on a noncentral F-test of the stochastic restrictions implicit in the ridge estimator. An appropriate significance level for the test is based on conjunctive use of strong and...