Question

    Which of the following test is used for

    Multicollinearity?
    A Part Test Correct Answer Incorrect Answer
    B Glejser Test Correct Answer Incorrect Answer
    C VIF Correct Answer Incorrect Answer
    D Breush-Pagan Test Correct Answer Incorrect Answer

    Solution

    VIF quantifies the severity of multicollinearity in an ordinary least squares regression analysis. It provides an index that measures how much the variance (the square of the estimate's standard deviation) of an estimated regression coefficient is increased because of collinearity (See test 1 for numerical example)

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