Asked by Jamie Williams on Jun 25, 2024
Verified
The variance inflation factor for each variable in a multiple regression analysis is listed below: 
Given these VIFs what can you say about multicollinearity in a model that includes all three of these variables?
Variance Inflation Factor
A measure used in statistics to identify the degree of multicollinearity in a set of regression variables.
Multicollinearity
A statistical phenomenon in which predictor variables in a multiple regression model are highly correlated, potentially diminishing the reliability of the estimates.
- Understand the implications of multicollinearity in regression analysis and how to detect it.
Verified Answer
TA
Tatyanna AlstonJun 30, 2024
Final Answer :
Conservative guidelines suggest that a maximum VIF of 5 or more suggests too much multicollinearity.For the example,all VIF values are below the suggested guideline.Therefore,multicollinearity is not an issue in this example.
Learning Objectives
- Understand the implications of multicollinearity in regression analysis and how to detect it.
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