vif (variance inflation factor)

How Can Leaders Address High VIF?

1. Remove Variables: One of the simplest ways to address high VIF is to remove one or more of the correlated variables.
2. Combine Variables: If two or more variables measure the same underlying phenomenon, they can be combined into a single variable.
3. Principal Component Analysis (PCA): This statistical technique can be used to transform correlated variables into a set of linearly uncorrelated variables.
4. Regularization Techniques: Methods like ridge regression can help to mitigate the effects of multicollinearity.

Frequently asked queries:

Relevant Topics