Use of the Singular Value Decomposition in Regression Analysis

Principal component analysis, particularly in the form of singular value decomposition, is a useful technique for a number of applications, including the analysis of two-way tables, evaluation of experimental design, empirical fitting of functions, and regression.This paper is a discussion in expository form of the use of singular value decomposition in multiple linear regression, with special reference to the problems of collinearity and near collinearity.