Of the following,which ONE variance inflation factor(VIF)would be a cause for concern?
A)7
B)4
C)1
D)12

Question

Quizplus · Accepted Answer

A VIF of 12 indicates a high level of correlation between the independent variables, which could lead to issues with multicollinearity. It is generally recommended to keep VIF values below 5, although some sources may suggest a cutoff of 10. A VIF of 1 indicates that there is no correlation between the independent variables. Therefore, C is not a cause for concern. A VIF of 4 or 7 may indicate some correlation between independent variables but is generally not considered problematic unless there are other indications of multicollinearity.

Of the Following,which ONE Variance Inflation Factor(VIF)would Be a Cause