In my model, I experience a multicollinearity problem in least squares estimation. Therefore, I decided to use the ridge regression method. I examined the variance inflation factors (VIFs).
In the beginning, some of the VIFs for the variables were above 10 and the R-Squared statistic was 61.24. The value of the ridge parameter in my model is 0.1. Now, VIFs are around 2 for all the variables in my model. Finally, the R-Squared statistic indicates that my model as fitted explains 57.59% of the variability. I believe that for my model this R-Squared statistic is too low.