Variable Inflation Factor. How the VIF is computed. The VIF for a predictor is calculated using this formula.
Plus Two Microeconomics Chapter Wise Previous Questions Chapter 3 Production And Costs A Plus Factors Of Production This Or That Questions How To Run Longer from in.pinterest.com
For example a VIF of 4 indicates that multicollinearity inflates the variance by a factor of 4 compared to a model with no multicollinearity. A variance inflation factor exists for each of the predictors in a multiple regression model. Variance Inflation Factors are defined on the level of regressors.
One method for detecting whether multicollinearity is a problem is to compute the variance inflation factor or VIF.
VIF measures the number of inflated variances caused by multicollinearity. These are interpretable as the inflation in size of the confidence ellipse or. Independent variables in a model. The value for VIF starts at 1 and has no upper limit.
