Book My Show Interview Question | Multicollinearity

Question

After analyzing the model, your manager has informed that your regression model is suffering from multicollinearity. How would you check if he’s true?

Without losing any information, can you still build a better model?

in progress 0
Dhruv2301 55 years 1 Answer 698 views Great Grand Master 0

Answer ( 1 )

  1. We can have a look at the Variance Inflation Factor (VIF).
    The VIF estimates how much the variance of a regression coefficient is inflated
    due to multicollinearity in the model.
    The VIF produces values above 1.
    Generally the range for VIF is
    1 = Not correlated
    1 to 5 = moderately correlated.
    5 and above = highly correlated.

Leave an answer

Browse
Browse