Which statistic(s) can help us detect multicollinearity?
A) Variance inflation factor (VIF)
B) F-statistic
C) Durbin-Watson
D) Tolerance values (1/VIF)

Question

Quizplus · Accepted Answer

Variance inflation factor (VIF) and tolerance values (1/VIF) are both used to detect multicollinearity. VIF measures the amount of variance in a predictor variable that is explained by the other predictor variables in the model, while tolerance measures the proportion of variance in a predictor variable that is not explained by the other predictor variables. High VIF values (typically > 10) and low tolerance values (typically < 0.1) indicate the presence of multicollinearity.

Which Statistic(s) Can Help Us Detect Multicollinearity