The variance inflation factor is used to select or remove independent variables to reduce the effects of multicollinearity in a multiple regression equation.

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Quizplus · Accepted Answer

This statement is true. Variance inflation factor (VIF) is a measure of collinearity between independent variables in a multiple regression equation. It is used to identify which independent variables are causing multicollinearity and thus need to be removed from the regression equation. A high VIF indicates that a variable is highly correlated with other independent variables, which can affect the accuracy and stability of the regression model. Therefore, removing such variables can help reduce multicollinearity and improve the reliability of the regression results.

The Variance Inflation Factor Is Used to Select or Remove