17th October 2018

statisticshowto
11

What is Multicollinearity with example?

Multicollinearity generally occurs when there are high correlations between two or more predictor variables. Examples of correlated predictor variables (also called multicollinear predictors) are: a person's height and weight, age and sales price of a car, or years of education and annual income.

Just so, what is variance inflation factor in statistics?

In statistics, the variance inflation factor (VIF) is the ratio of variance in a model with multiple terms, divided by the variance of a model with one term alone. It quantifies the severity of multicollinearity in an ordinary least squares regression analysis.

What is Vif stand for?

VIF
AcronymDefinition
VIFVariance Inflation Factor
VIFVirtual Interface
VIFVisiting International Faculty
VIFVirtual Interrupt Flag

What VIF value indicates Multicollinearity?

The Variance Inflation Factor (VIF) is 1/Tolerance, it is always greater than or equal to 1. There is no formal VIF value for determining presence of multicollinearity. Values of VIF that exceed 10 are often regarded as indicating multicollinearity, but in weaker models values above 2.5 may be a cause for concern.
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