Modified Robust Ridge M-Estimators in Two-Parameter Ridge Regression Model

The methods of two-parameter ridge and ordinary regression are very sensitive to the presence joint problem multicollinearity outliers in y-direction. To overcome this problem, modified robust M-estimators proposed. new estimators then compared with existing ones by means extensive Monte Carlo simulations. According mean squared error (MSE) criterion, outperform least square estimator, estimator many considered scenarios. Two numerical examples also presented illustrate simulation results.