Which Is a Characteristic of the Variance Inflation Factor (VIF)

question 43

Multiple Choice

Which is a characteristic of the variance inflation factor (VIF) ?

• A)It is insignificant unless the corresponding t statistic is significant.
• B)It reveals collinearity rather than multicollinearity.
• C)It measures the degree of significance of each predictor.
• D)It indicates the predictor's degree of multicollinearity.

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Definitions:

Tangible Assets

Physical items of value owned by a business, such as buildings, machinery, or inventory.

Balance Sheet Method

An accounting technique used to estimate the liquidity of a company by analyzing its assets, liabilities, and shareholders' equity at a given point in time.

Asset Method

A business valuation technique that calculates a company's worth based on the total value of its tangible and intangible assets.

Business Valuation

The process of determining the economic value of a whole business or company unit to assess its worth for various purposes like sale, partner ownership, or divorce proceedings.