Which is a characteristic of the variance inflation factor (VIF)?
A)It is insignificant unless the corresponding t statistic is significant.
B)It reveals collinearity rather than multicollinearity.
C)It measures the degree of significance of each predictor.
D)It indicates the predictor's degree of multicollinearity.

Question

Quizplus · Accepted Answer

The variance inflation factor (VIF) indicates the degree of multicollinearity of each predictor. Choice (A) is incorrect because VIF is a separate measure from the t statistic. Choice (B) is incorrect because VIF reveals both collinearity and multicollinearity. Choice (C) is incorrect because VIF does not measure the degree of significance of each predictor, but rather their degree of multicollinearity.

Which Is a Characteristic of the Variance Inflation Factor (VIF)