The Application of the Least Squares Method to Multicollinear Data

Regression analysis is an that aims to determine whether there a statistically dependent relationship between two variables, namely the predictor variable and response variable. One of methods for estimating multiple linear regression parameters Least Squares Method. Therefore, careful meticulous selection appropriate techniques are required overcome multicollinearity problem ensure accurate meaningful results. Descriptive statistical table variables where average results rounded. The equation using OLS method as follows: Y ̂=2,037+0.302X_1+0.206X_2+0.172X_3+0.342X_4. it important use special such regularization or PCA in data before applying least squares method. Thus, we can obtain more stable coefficient estimates reliable model.