Application of New Ridge Regression Methods to a Study of Bell System Scale Economies

1 December 1976

journal article
research article
Published by JSTOR in Journal of the American Statistical Association

Vol. 71 (356) , 835
https://doi.org/10.2307/2286847

Abstract

We suggest a new horizontal scaling for the ridge trace, some new techniques for monitoring ridge solutions including an index of stability of relative magnitudes (ISRM) and numerical largeness of more significant (NLMS) regression coefficients. A method of curtailing the tending of ridge regression coefficients toward zero is also presented. Two examples illustrate these methods and estimate Bell System's scale economies to be large.

Keywords

RIDGE REGRESSION
NEW RIDGE
BELL SYSTEM
REGRESSION METHODS
SYSTEM SCALE
SCALE ECONOMIES
APPLICATION

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