Local Influence Analysis for The Ridge Regression Under Stochastic Linear Restrictions

Abstract

In this article, we assess the local influence for the ridge regression of linear models with stochastic linear restrictions in the spirit of Cook by using the log-likelihood of the stochastic restricted ridge regression estimator. The diagnostics under the perturbations of constant variance, responses and individual explanatory variables are derived. We also assess the local influence of the stochastic restricted ridge regression estimator under the approach suggested by Billor and Loynes. At the end, a numerical example on the Longley data is given to illustrate the theoretic results.

Keywords:

• Local influence
• Stochastic restricted ridge
• Perturbation

Mathematics Subject Classification:

• 62J05
• 62J20