The multiple linear regression analysis shows the effects of explanatory variables on the dependent variable. Its function is to represent data to understand the shape and nature of the relationship between explanatory variables and the response variable. One of the main problems faced by linear regression is the nature of the data, as sometimes it does not follow a normal distribution. This has led to the emergence of different types of linear regression models such as the beta regression model, where the data of the dependent variable is less than one and confined within the period (0,1), and the data is relative and decimal. Non-traditional methods will be used to estimate beta regression parameters because some traditional methods do not provide suitable and accurate results when dealing with one of the main problems encountered in regression, which is multicollinearity. To address this issue, we used some methods include The Maximum Likelihood Estimation (MLE), ridge regression, modified Liu, and Ozkale and Kaciranlar method. Shrinking parameters are proposed for each method, and a comparison between the methods is conducted using the Mean Squared Error comparison criterion through a simulation experiment with two approaches, the simulation results showed that the ridge regression method is the best for the first and second methods of simulation.

Paper type Research Paper