Data were collected on the following variables: turnover rate, job growth, number of employees, and innovative index and fit in a model to explain Turnover Rate.To check for the possibility of collinearity, a regression among predictor variables job growth and employees predicting a third predictor variable, innovative index, was run and was found to have an R² = 8.8% and S=319.23.The Variance Inflation Factor (VIF) for the predictor variable Employees is ________________________ . A)8.33 B)1.10 C)319.23 D)1.00 E)3.20

Question

Quizplus · Accepted Answer

The Variance Inflation Factor (VIF) is calculated as 1/(1-R^2) where R^2 is the coefficient of determination. Given R^2 = 8.8% or 0.088, VIF = 1/(1-0.088) = 1.0965, which rounds to 1.10, indicating a low level of collinearity.

Data Were Collected on the Following Variables: Turnover Rate, Job