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How does one reconcile multicolinearity in data once it is found? Chapter 9 mentions two popular choices: ridge regression (i.e., Kriging) and principle components regression.

How does one reconcile multicolinearity in data once it is found? Chapter 9 mentions two popular choices: ridge regression (i.e., Kriging) and principle components regression. Consider the data found in Table B.15 detailing mortality and air pollution on a by city/demographic basis. Following Example 9.3, use principle-components regression in comparison with standard ordinary least squares. Highlight what relationships can be elucidated from the principle components.

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