The variance inflation factor can be used to
A) select or eliminate variables for a multiple regression model.
B) evaluate homoscedasticity.
C) evaluate the distribution of residuals.
D) test null hypothesis that all regression coefficients equal zero must be rejected.

Question

Quizplus · Accepted Answer

The variance inflation factor (VIF) measures how much the variance of a regression coefficient is inflated due to collinearity among the predictor variables. A high VIF indicates that the corresponding predictor variable is strongly correlated with at least one other predictor variable and may need to be eliminated from the model. Therefore, the VIF can be used to select or eliminate variables for a multiple regression model.

The Variance Inflation Factor Can Be Used to