On doing a Multiple Linear Regression Model, the VIF Value is 2.8. What should the Black Belt infer?
OPTIONS
- Since VIF > 0, the variables are collinear
- Since VIF < 5, variables being collinear is not much of an issue
- High degree of collinearity amongst variables
- None of the above
ANSWER
Since VIF < 5, variables being collinear is not much of an issue
EXPLANATION
If VIF < 5, it only shows weak to moderate collinearity, which shouldn’t be much of a concern, so THE SECOND OPTION is correct.
