**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

Acronym | Definition |
---|---|

VIF | Variance Inflation Factor |

VIF | Virtual Interface |

VIF | Visiting International Faculty |

VIF | Virtual 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.