About Variance Inflation Factor Calculator (Formula)
The Variance Inflation Factor (VIF) Calculator is a tool used to assess multicollinearity in regression analysis by measuring how much the variance of the estimated regression coefficients is inflated due to correlations among predictor variables. High VIF values indicate that multicollinearity is present, which can affect the reliability and interpretation of regression results. The formula for calculating the VIF of a predictor variable in a multiple regression model is as follows:
VIF = 1 / (1 – R²)
Where:
- VIF: The Variance Inflation Factor for a specific predictor variable.
- R²: The coefficient of determination of the predictor variable being assessed in relation to all other predictor variables.
A high VIF value (typically above 10) suggests that the predictor variable is highly correlated with other predictor variables in the model, which can lead to challenges in interpreting the individual effects of each predictor on the response variable.
The Variance Inflation Factor Calculator is a valuable tool for statisticians, analysts, and researchers conducting regression analyses to identify and address multicollinearity issues. It helps ensure the accuracy and reliability of regression results and aids in making informed decisions about variable selection and model building.