A regression diagnostic tool used to study the possible effects of collinearity is
A)the slope.
B)the Y-intercept.
C)the VIF.
D)the standard error of the estimate.

Question

Quizplus · Accepted Answer

Collinearity occurs when predictor variables in a model are highly correlated with each other. VIF (Variance Inflation Factor) is a regression diagnostic tool used to study the possible effects of collinearity. It measures the magnitude of multicollinearity and ranges from 1 (no multicollinearity) to infinity (perfect multicollinearity). A VIF value greater than 10 is a concern for multicollinearity. Therefore, C is the best choice.

A Regression Diagnostic Tool Used to Study the Possible Effects