Which of these statements is not true?
A) If the average variance inflation factor is greater than 1, the regression model might be biased.
B) Tolerance values above 0.2 may indicate multicollinearity in the data.
C) Multicollinearity in the data is shown by a VIF (variance inflation factor) greater than 10.
D) The tolerance value is calculated by 1 / VIF (variance inflation factor)

Question

Quizplus · Accepted Answer

Tolerance values are used to detect multicollinearity, but a common threshold for concern is actually below 0.2, not above. Lower tolerance values indicate higher multicollinearity.

Which of These Statements Is Not True