You've detected a high Variance Inflation Factor (VIF) for one of the variables in your Multiple Linear Regression model. What does this indicate, and how would you proceed?

  • High multicollinearity and consider removing or combining variables
  • Low multicollinearity
  • No multicollinearity
  • The variable is not significant
A high VIF indicates high multicollinearity, meaning the variable is highly correlated with other variables in the model. You may consider removing or combining variables, applying regularization, or using dimensionality reduction techniques to address this issue and improve the model's performance.
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