Ridge Regression



Hi Experts

How does the problem of multicolinearity get solved when we use ridge regression.



Hi @tillutony,

In simple terms, ridge regression penalizes the coefficients (i.e, reducing the magnitude) such that the impact the multicollinear features do not dominate our entire results.

I have explained more in detail in my article. https://www.analyticsvidhya.com/blog/2017/06/a-comprehensive-guide-for-linear-ridge-and-lasso-regression/

Hope this will clear your doubt.