Which of the following is true about multicollinearity?
A) The effect of a dependent variable on another becomes difficult to isolate.
B) Regression coefficients become clearer and are easier to interpret.
C) P-values reduce significantly leading to rejection of null hypothesis.
D) It is best measured using the statistic variance inflation factor (VIF).

Question

Quizplus · Accepted Answer

Multicollinearity is best measured using the variance inflation factor (VIF), which quantifies how much the variance of an estimated regression coefficient increases when your predictors are correlated.

Which of the Following Is True About Multicollinearity