The ridge regression lambda
is specified by the user within the Multiple Regression module.

The vector of standardized ridge regression estimates is given as follows:

bstandardized ridge = ( RXX + lambda * I )-1 RYX

RXX = correlation matrix of predictors

RYX

Lambda = user specified shrinkage parameter

I = identity matrix

The standardized coefficients are then placed on the raw scale via:

bi,ridge = ( sY/sxi ) bi,standardized ridge

where,

sy = standard deviation of the response

sxi = standard deviation of the predictor

the intercept is then given by: