A researcher wants to address multicollinearity using the guideline that a variance inflation factor (VIF)greater than 9 will indicate a severe multicollinearity problem.This means that the highest coefficient of determination allowed will be ______.
A) 0.900
B) 0.912
C) 0.928
D) 0.935
E) 0.939

Question

Quizplus · Accepted Answer

The highest coefficient of determination allowed can be calculated as R² = 1 - (1/VIF). Therefore, if VIF is 9, R² will be 0.935. Thus, the correct answer is D.

A Researcher Wants to Address Multicollinearity Using the Guideline That