What is the Variance Inflation Factor (VIF) and how does it help in identifying Multicollinearity?
- A mathematical formula to measure the correlation between variables.
- A measure that estimates how much the variance of a coefficient is increased due to multicollinearity.
- A statistical method to calculate the variance of a dataset.
- A technique to visualize the relationship between multiple variables.
The Variance Inflation Factor (VIF) is a measure that estimates how much the variance of a regression coefficient is increased due to multicollinearity. VIF provides an index that measures how much the variance of an estimated regression coefficient is increased because of multicollinearity. In general, a VIF above 5 indicates a high multicollinearity.
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