The Variance Inflation Factor Can Be Used to

question 63

Multiple Choice

The variance inflation factor can be used to

• A) select or eliminate variables for a multiple regression model.
• B) evaluate homoscedasticity.
• C) evaluate the distribution of residuals.
• D) test null hypothesis that all regression coefficients equal zero must be rejected.

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Definitions:

Inequality

A mathematical statement that indicates that two expressions are not equal, using symbols such as <, >, ≤, or ≥.

Operating Cost

Expenses associated with the day-to-day running of a business, such as rent, utilities, and salaries.