A New Ridge-Type Estimator for the Linear Regression Model: Simulations and Applications

Table 5

Estimated MSE when n = 30, , and ρ = 0.70 and 0.80.

n = 30	0.7					0.8
Sigma	k = d	OLS	Ridge	Liu	New ridge	OLS	Ridge	Liu	New ridge
1	0.1	0.838	0.811	0.651	0.785	1.239	1.179	0.859	1.121
	0.2		0.786	0.670	0.737		1.124	0.895	1.018
	0.3		0.763	0.689	0.694		1.074	0.933	0.928
	0.4		0.741	0.709	0.654		1.029	0.973	0.850
	0.5		0.720	0.729	0.618		0.987	1.014	0.781
	0.6		0.701	0.750	0.586		0.949	1.056	0.721
	0.7		0.682	0.771	0.556		0.914	1.100	0.669
	0.8		0.665	0.793	0.529		0.881	1.145	0.623
	0.9		0.649	0.815	0.505		0.851	1.191	0.583
	1		0.633	0.838	0.484		0.823	1.239	0.549
5	0.1	20.955	20.275	16.063	19.608	30.981	29.455	21.084	27.975
	0.2		19.633	16.568	18.362		28.060	22.071	25.314
	0.3		19.026	17.083	17.208		26.780	23.086	22.951
	0.4		18.452	17.607	16.139		25.602	24.130	20.845
	0.5		17.908	18.141	15.147		24.513	25.201	18.963
	0.6		17.391	18.685	14.226		23.506	26.301	17.279
	0.7		16.901	19.238	13.369		22.570	27.429	15.767
	0.8		16.435	19.801	12.572		21.699	28.585	14.408
	0.9		15.990	20.373	11.829		20.885	29.769	13.185
	1		15.567	20.955	11.137		20.125	30.981	12.081
10	0.1	83.821	81.095	64.205	78.423	123.923	117.811	84.259	111.887
	0.2		78.523	66.233	73.429		112.224	88.219	101.225
	0.3		76.091	68.299	68.804		107.097	92.291	91.749
	0.4		73.789	70.403	64.513		102.375	96.475	83.301
	0.5		71.608	72.545	60.530		98.014	100.770	75.750
	0.6		69.537	74.725	56.827		93.973	105.177	68.983
	0.7		67.569	76.942	53.382		90.220	109.696	62.908
	0.8		65.698	79.197	50.173		86.725	114.327	57.441
	0.9		63.915	81.490	47.182		83.463	119.069	52.515
	1		62.215	83.821	44.392		80.411	123.923	48.069