A researcher wants to address multicollinearity using the guideline that a variance inflation factor (VIF)greater than 9 will indicate a severe multicollinearity problem.This means that the highest coefficient of determination allowed will be ______.
A)0.900
B)0.912
C)0.928
D)0.889
E)0.939

Question

Quizplus · Accepted Answer

The variance inflation factor (VIF) is calculated as 1/(1-R^2), where R^2 is the coefficient of determination. If VIF > 9 indicates severe multicollinearity, then 1/(1-R^2) > 9. Solving for R^2 gives R^2 > 0.888... (or 0.889 when rounded to three decimal places).

A Researcher Wants to Address Multicollinearity Using the Guideline That