2020
DOI: 10.1088/1742-6596/1463/1/012006
|View full text |Cite
|
Sign up to set email alerts
|

Partial Least Square (PLS) Method of Addressing Multicollinearity Problems in Multiple Linear Regressions (Case Studies: Cost of electricity bills and factors affecting it)

Abstract: Multiple regression analysis is a statistical analysis used to predict the effect of several independent variables on the dependent variable. The problem that often occurs in multiple linear regression models is multicollinearity which is a condition of a strong relationship between independent variables. To overcome the problem of multicollinearity, the Partial Least Square method is used. This method reduces independent variables that have no significant effect on the dependent variable, then new variables w… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1
1
1
1

Citation Types

0
6
0

Year Published

2021
2021
2024
2024

Publication Types

Select...
8

Relationship

0
8

Authors

Journals

citations
Cited by 13 publications
(6 citation statements)
references
References 0 publications
0
6
0
Order By: Relevance
“…As an empirical rule, the more this factor exceeds 5, the more the co-linear rate also increases (max. 5) [64][65][66][67].…”
mentioning
confidence: 99%
“…As an empirical rule, the more this factor exceeds 5, the more the co-linear rate also increases (max. 5) [64][65][66][67].…”
mentioning
confidence: 99%
“…There are 2 requirements regarding the sample size. First, the ratio of the sample size to the number of parameters should be greater than 5:1 [ 57 ]; second, the sample size should be greater than 10 times the largest number of either the formative items used to measure a single construct or the largest number of paths the latent variable has in the model [ 45 , 47 ]. In this study, the number of parameters is 7, the number of formative items is 3, and the number of paths the latent variable has is 10.…”
Section: Resultsmentioning
confidence: 99%
“…The research model was tested by partial least squares structural equation modelling (PLS-SEM) using the software program SmartPLS (version 3.0, SmartPLS GmbH) [ 39 , 45 , 46 ]. The PLS-SEM is commonly used to model the dynamic relationships between antecedent variables and dependent variables, thereby addressing the limitation of the multiple regression model with a relatively fixed relationship between variables and multicollinearity issues [ 47 ]. Moreover, the average number of latent variables in PLS-SEM is 7.94, which is much higher than 4.70 in covariance-based SEM [ 46 ].…”
Section: Methodsmentioning
confidence: 99%
“…However, multicollinearity has been shown to be less problematic in large samples compared to smaller ones ( James et al, 2013 ). In contrast, the PLS methods are largely robust to multicollinearity ( Palermo et al, 2009 ; Wondola et al, 2020 ). Finally, it is important to note that the loadings of particular brain regions and psychopathology factors on the latent variables yielded by CCA/PLSC/PLSR analysis may vary slightly across different algorithms and software platforms.…”
Section: Discussionmentioning
confidence: 99%