Answer true or false to each of the following statements and explain your answers. a. Multicollinearity occurs when two or more of the predictor variables are highly intercorrelated. b. The variance inflation factor, VIF, for a predictor variable cannot change as we add other predictor variables to the regression equation. c. If the points in a three-dimensional scatterplot of predictor variables x1, x2, and x3 lie approximately on a line or a plane, the VIF s for these predictor variables will be close to zero.

Question

Answer true or false to each of the following statements and explain your answers.

a. Multicollinearity occurs when two or more of the predictor variables are highly intercorrelated.

b. The variance inflation factor, VIF, for a predictor variable cannot change as we add other predictor variables to the regression equation.

c. If the points in a three-dimensional scatterplot of predictor variables x1, x2, and x3 lie approximately on a line or a plane, the VIF s for these predictor variables will be close to zero.

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