Question

The variance inflation factor (VIF) is another measure that can detect a high correlation between three or more predictor variables even if no pair of predictor variables has a particularly high correlation. What is the smallest possible value of VIF? (absence of multicollinearity).

A. Zero
B. VIF exceeds 5 or 10
C. VIF does not exceed 5 or 10
D. One

Answer 1

The smallest possible value of VIF (variance inflation factor) that indicates an absence of multicollinearity is one (1).

Step-by-step explanation:

The smallest possible value of VIF (variance inflation factor) that indicates an absence of multicollinearity is one (1).

VIF detects high correlation between three or more predictor variables, even if no pair of predictor variables has a particularly high correlation. When VIF is equal to one, it suggests that there is no multicollinearity in the data, meaning the predictor variables are not highly correlated with each other.