A regression diagnostic tool used to study the possible effects of collinearity is
A) the slope.
B) the Y-intercept.
C) the standard error of the estimate.
D) the VIF.

Question

Quizplus · Accepted Answer

The VIF (Variance Inflation Factor) is a regression diagnostic tool used to study the possible effects of collinearity. It is used to identify if the independent variables in a regression model are highly correlated with each other, which can cause problems such as inflated standard errors and unstable coefficients. A VIF value greater than 1.5-2 is usually considered indicative of potentially problematic collinearity. Therefore, the VIF is the best choice for studying the possible effects of collinearity.

A Regression Diagnostic Tool Used to Study the Possible Effects