Which of the following is computed by most regression programs and provide an indication of how much multicollinearity exists among a set of independent variables?
A)χ²
B)β
C)collinear coefficient
D)variance inflation factor (VIF)

Question

Quizplus · Accepted Answer

Variance inflation factor (VIF) is computed by most regression programs and provides an indication of how much multicollinearity exists among a set of independent variables. VIF measures the increase in the variance of estimator for βj that occurs because of collinearity in the model. A VIF greater than 1 indicates that there is likely to be multicollinearity among the independent variables, with values above 5 or 10 indicating serious multicollinearity.

Which of the Following Is Computed by Most Regression Programs