LEAST-SQUARES RIDGE-REGRESSION AND GOAL PROGRAMMING CONSTRAINED REGRESSION ALTERNATIVES

Ridge regression has been extensively reviewed in the literature of applied statistics as a method for dealing with problems of collinearity in least squares regressions. In this paper, ordinary least squares and least squares combined with ridge regressions are examined and compared with ordinary goal programming and goal programming combined with constraints on regressand values that admissible statistical estimates must satisfy. The comparisons are effected by means of an example in chemical processing that has been extensively treated in the ridge regression literature.