A new estimator for the multicollinear Poisson regression model: simulation and application
Adewale F. Lukman, Emmanuel T. Adewuyi, Kristofer Månsson, B. M. Golam Kibria
Abstract
The maximum likelihood estimator (MLE) suffers from the instability problem in the presence of multicollinearity for a Poisson regression model (PRM). In this study, we propose a new estimator with some biasing parameters to estimate the regression coefficients for the PRM when there is multicollinearity problem. Some simulation experiments are conducted to compare the estimators' performance by using the mean squared error (MSE) criterion. For illustration purposes, aircraft damage data has been analyzed. The simulation results and the real-life application evidenced that the proposed estimator performs better than the rest of the estimators.
Topics & Concepts
MulticollinearityEstimatorMean squared errorStatisticsPoisson regressionPoisson distributionVariance inflation factorComputer scienceRegression analysisMathematicsDemographyPopulationSociologyAdvanced Statistical Methods and ModelsProbabilistic and Robust Engineering DesignStatistical Distribution Estimation and Applications