An independent variable Xj is considered highly correlated with the other independent variables if A) VIF_j VIF_i for i ? j . B) VIF_j 5. C) VIF_j

Question

An independent variable Xj is considered highly correlated with the other independent variables if A) VIF_j > VIF_i for i ? j . B) VIF_j > 5. C) VIF_j< VIF_ifor i ?j . D) VIF_j< 5.

Quizplus · Accepted Answer

A VIF above 5 indicates high multicollinearity between the independent variables, so option B is the correct choice. Options A and C are incorrect because they involve comparing the VIFs of different variables, which does not necessarily indicate correlation between them. Option D is also incorrect since a VIF less than 5 does not necessarily mean low correlation.

An Independent Variable Xj Is Considered Highly Correlated with the Other