Which of the following is computed by most regression programs and provide an indication of how much multicollinearity exists among a set of independent variables? A) c² B) b C) collinear coefficient D) variance inflation factor (VIF)

Question

Quizplus · Accepted Answer

The variance inflation factor (VIF) is a commonly computed statistic in regression analysis that indicates the extent to which multicollinearity exists among a set of independent variables. It measures the degree to which the variance of the estimated regression coefficient is inflated due to collinearity with other independent variables. A VIF value of 1 indicates no multicollinearity, while values greater than 1 suggest increasing levels of multicollinearity, with values above 5 or 10 indicating severe multicollinearity. Therefore, D is the correct answer.

Which of the Following Is Computed by Most Regression Programs