Answered: If VIF- variance inflation factor is…

If VIF- variance inflation factor is 1.25 what does it suggest when price is a function of income Is multicollinearity an issue here?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If VIF- variance inflation factor is 1.25 what does it suggest when price is a function of income

Is multicollinearity an issue here?

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