Dealing With Multicollinearity With R

Chaitanya Sagar explains the concept of multicollinearity in linear regressions and how we can mitigate this issue in R:

Perfect multicollinearity occurs when one independent variable is an exact linear combination of other variables. For example, you already have X and Y as independent variables and you add another variable, Z = a*X + b*Y, to the set of independent variables. Now, this new variable, Z, does not add any significant or different value than provided by X or Y. The model can adjust itself to set the parameters that this combination is taken care of while determining the coefficients.

Multicollinearity may arise from several factors. Inclusion or incorrect use of dummy variables in the system may lead to multicollinearity. The other reason could be the usage of derived variables, i.e., one variable is computed from other variables in the system. This is similar to the example we took at the beginning of the article. The other reason could be taking variables which are similar in nature or which provide similar information or the variables which have very high correlation among each other.

Multicollinearity can make regression analysis trickier, and it’s worth knowing about.  H/T R-bloggers.

Related Posts

Interactive ggplot Plots with plotly

Laura Ellis takes us through ggplotly: As someone very interested in storytelling, ggplot2 is easily my data visualization tool of choice. It is like the Swiss army knife for data visualization. One of my favorite features is the ability to pack a graph chock-full of dimensions. This ability is incredibly handy during the data exploration […]

Read More

Goodbye, gather and spread; Hello pivot_long and pivot_wide

John Mount covers a change in tidyr which mimics Mount and Nina Zumel’s pivot_to_rowrecs and unpivot_to_blocks functions in the cdata package: If you want to work in the above way we suggest giving our cdatapackage a try. We named the functions pivot_to_rowrecs and unpivot_to_blocks. The idea was: by emphasizing the record structure one might eventually internalize what the transforms […]

Read More

Categories

August 2018
MTWTFSS
« Jul Sep »
 12345
6789101112
13141516171819
20212223242526
2728293031