Ridge Regression Model Application in Case Human Development Index in Banten Province

Abstract

One of the instruments to measure the level of human welfare is the Human Development Index (HDI). The use of regression models in the case study of HDI data in Banten Province in 2017 shows that the multicollinearity assumption is not fulfilled. To overcome this multicollinearity problem, the modeling of HDI data in Banten Province in 2017 was completed using the Ridge regression model. To receive the expected results, this research was conducted with literature studies and case studies. From these models obtained factors that significantly influence the HDI are a life expectancy at birth, expected years of schooling, mean years of schooling of the adult population and adjusted Gross National Product per capita.