Prediction in R using Ridge Regression

Ridge regression is a regularization method, where the coefficients are shrank with the purpose of reducing the variance of the solution and therefore improving prediction accuracy. Below we will implement ridge regression on the longley and prostate data sets using two methods: the lm.ridge() function and  the linearRidge() function. Pay special attention to the scaling of the coefficients and the offseting of the predicted values for the lm.ridge() function.

Ridge regression in R examples