The Variance Inflation Factor (VIF) Provides a Measure for Each

question 85

True/False

The variance inflation factor (VIF) provides a measure for each independent variable of how much multicollinearity is associated with that particular independent variable.

---

Definitions:

Credit Policy

The guidelines a company follows to determine the amount and terms of credit to extend to customers.

5 C's of Credit

Refers to the five key elements a lender considers when assessing the creditworthiness of a potential borrower: character, capacity, capital, collateral, and conditions.

Conditions

Specific terms or requirements outlined in an agreement or contract, which must be met for the agreement to be fully enforceable.

Economic Conditions

The state of the economy at a certain time, including factors like inflation, employment rates, and GDP growth.