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

Question

Quizplus · Accepted Answer

Tolerance values are actually the inverse of VIF, so a tolerance value below 0.1 (not above 0.2) is often used as a threshold to indicate potential multicollinearity issues. Higher tolerance values indicate lower multicollinearity.

Which of These Statements Is Not True