So, I need to determine multicollinearity of predictors, but I have only two.

Sandra Terrell 2022-08-08 Answered
I need to determine multicollinearity of predictors, but I have only two. So, if VIF 1 1 R j 2 , then in case there are no other predictors VIF will always equal 1? So, maybe it's not even possible to gauge multicollinearity if there are only two predictors?
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Answers (1)

Michelle Chavez
Answered 2022-08-09 Author has 13 answers
Step 1
Let's say you have Y and two predictors X 1 and X 2 , then the R j 2 in the VIF index is R 1 2 obtained from the model X 1 = α 0 + α 1 X 2 + ξ . That is, unless X 1 and X 2 are uncorrelated, R 1 2 > 0 , hence VIF > 1 .

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