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Unit 2: Statistical Decision Theory

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Ridge regression adds which term to the loss function?
(i) L1 norm
(ii) Entropy
(iii) L2 norm
(iv) Cross-entropy

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Answer: (iii) L2 norm

Explanation:

Ridge Regression (Tikhonov regularization) adds L2 penalty to OLS loss:

J(w)=∑i=1n(yi−wTxi)2+λ∣∣w∣∣22J(w) = \sum_{i=1}^n (y_i - w^T x_i)^2 + \lambda ||w||_2^2 where ∣∣w∣∣22=∑jwj2||w||_2^2 = \sum_j w_j^2, λ>0\lambda >0

  • Shrinks coefficients toward zero, handles multicollinearity, reduces variance / overfitting.
  • Closed form: wridge=(XTX+λI)−1XTyw_{ridge} = (X^T X + \lambda I)^{-1} X^T y

Contrast:

  • L1 norm (i) → Lasso regression, induces sparsity/feature selection.
  • Entropy (ii) / Cross-entropy (iv) → used in logistic regression / decision trees, not ridge.

So ridge = L2.

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