If the coefficient of determination between two independent variables is .50, what is the VIF?

1 answer

The coefficient of determination (R-squared) is not directly related to the variance inflation factor (VIF).

The VIF is a measure of multicollinearity, which refers to the degree of correlation between independent variables in a regression model. It quantifies how much the variance of the estimated regression coefficients is increased due to multicollinearity.

To calculate the VIF, you need to perform a multiple regression analysis with the independent variables. The VIF for each independent variable is calculated as 1/(1 - R-squared), where R-squared is the coefficient of determination obtained from the regression.

So, in this case, if the coefficient of determination between two independent variables is 0.50, the VIF for each variable would be 1/(1 - 0.50) = 2.