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On the Performance of Principal Component Liu-Type Estimator under the Mean Square Error Criterion

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  • Jibo Wu

Abstract

Wu (2013) proposed an estimator, principal component Liu-type estimator, to overcome multicollinearity. This estimator is a general estimator which includes ordinary least squares estimator, principal component regression estimator, ridge estimator, Liu estimator, Liu-type estimator, class estimator, and class estimator. In this paper, firstly we use a new method to propose the principal component Liu-type estimator; then we study the superior of the new estimator by using the scalar mean squares error criterion. Finally, we give a numerical example to show the theoretical results.

Suggested Citation

  • Jibo Wu, 2013. "On the Performance of Principal Component Liu-Type Estimator under the Mean Square Error Criterion," Journal of Applied Mathematics, Hindawi, vol. 2013, pages 1-7, December.
  • Handle: RePEc:hin:jnljam:858794
    DOI: 10.1155/2013/858794
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