Multicollinearity: Is this a Concern?
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July 9, 2019Power Analysis and type of quantitative test
July 9, 2019If the multiple coefficient of determinationthat relates x3 to all the other independent variables, R2(x3) = .8, calculate the varianceinflation factor for x3. Should the analyst be concerned about multicollinearity? Why?
The variance inflation factor = 1/(1-0.8^2)=2.78. A rule of thumb …
The solution gives detailed steps on computing the variance inflation factor. All formula and calculations are shown and explained.
