A ridge estimator is a type of statistical technique used in regression analysis that helps to address multicollinearity among predictor variables by adding a penalty term to the ordinary least squares (OLS) loss function. This method modifies the standard estimation process by introducing a bias in exchange for a reduction in variance, ultimately leading to more reliable predictions when predictors are highly correlated. It helps in stabilizing the estimates when the design matrix is ill-conditioned, making it particularly useful for high-dimensional datasets.
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