Which of the following regressions will help when there is the existence of near-linear relationships among the independent variables (collinearity)?
Lasso regression and ridge regression are both types of linear regression models that can handle high-dimensional and categorical data. They use regularization techniques to reduce the complexity of the model and avoid overfitting. Lasso regression uses L1 regularization, which adds a penalty term proportional to the absolute value of the coefficients to the loss function. This can shrink some coefficients to zero and perform feature selection. Ridge regression uses L2 regularization, which adds a penalty term proportional to the square of the coefficients to the loss function. This can shrink all coefficients towards zero and reduce multicollinearity. Reference: [Lasso (statistics) - Wikipedia], [Ridge regression - Wikipedia]
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