INCREASE THE EFFICIENCY OF PREDICTION EQUATION FOR MULTICOLLINEARITY IN VEGETABLE OILS
Abstract: Egypt's lack of vegetable oil production is of paramount importance and is an important target because it is an important food for humans and a commodity of strategic food commodities, The nutritional importance of vegetable oils is due to the fact that it contains important fat-soluble vitamins and is a major source of energy, The problem of vegetable oils in Egypt is limited to the limited quantities of vegetable oil produced for the required quantities, Local production is unable to cover the needs of local consumption and thus the food gap widened.
In the multiple regression model there should be several assumptions. If one or more of these assumptions fall, some of the problems that have some undesirable effects may arise, resulting in inaccurate estimates of the equation. Perhaps the most important of these problems is multicollinearity problem which means that there is a strong linear relationship between the explanatory variables used in the multiple regression model. There are several ways to detect and address this problem, including the Ridge regression method, which gives somewhat biased estimates of equation parameters but with a smaller variance in addition to comparing its results with those of OLS method. The study revealed the existence of multicollinearity in the statistical model of the variables affecting the consumption of vegetable oils in Egypt during the period of the study. (2000 - 2015), where the economic variables affected about 98% in the presence of the problem of multicollinearity and about 90% of the total factors affecting the consumption of vegetable oils in Egypt after the treatment of the problem using (RR) method (RR). The study recommends activation methods of identifying multicollinearity problem by economists and statisticians and accurately determine their causes, and expand the use of Ridge regression method whenprocessing multicollinearity as an effective, useful and reliable way with a statement in
which its flaws
Publication year 2018
Organization Name
serial title المجلة المصرية للاقتصاد الزراعي، الجمعية المصرية للاقتصاد الزراعي
Author(s) from ARC
Publication Type Journal
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