Tag: VIF Calculation
How to Calculate Tolerance Value and Variance Inflation Factor (VIF)
The tolerance value and Variance Inflation Factor (VIF) are important metrics that you can use to detect multicollinearity among independent variables. If we recall the basic theory, multicollinearity testing is an assumption test in the Ordinary Least Squares (OLS) regression method, which aims to ensure that there is no strong correlation between independent variables.
How to Calculate the Variance Inflation Factor (VIF) in a Multicollinearity Test for Regression
In linear regression analysis, to obtain the best linear unbiased estimator, you need to perform a series of assumption tests. One of the assumption tests required in linear regression is the multicollinearity test.