# The variance inflationary factor vif measures the a

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6. The Variance Inflationary Factor (VIF) measures the a) correlation of the X variables with the Y variable. b) correlation of the X variables with each other. c) contribution of each X variable with the Y variable after all other X variables are included in the model. d) standard deviation of the slope. ANSWER: b TYPE: MC DIFFICULTY: Easy KEYWORDS: variance inflationary factor, collinearity 7. The p C statistic is used

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Multiple Regression Model Building 199 TABLE 15-1 To explain personal consumption (CONS) measured in dollars, data is collected for INC: personal income in dollars CRDTLIM: \$1 plus the credit limit in dollars available to the individual APR: average annualized percentage interest rate for borrowing for the individual ADVT: per person advertising expenditure in dollars by manufacturers in the city where the individual lives SEX: gender of the individual; 1 if female, 0 if male A regression analysis was performed with CONS as the dependent variable and ln(CRDTLIM), ln(APR), ln(ADVT), and SEX as the independent variables. The estimated model was \$ 2.28-0.29 ln(CRDTLIM) 5.77 ln(APR) 2.35 ln(ADVT) 0.39 SEX y = + + + 8. Referring to Table 15-1, what is the correct interpretation for the estimated coefficient for ADVT?
200 Multiple Regression Model Building 9. Referring to Table 15-1, what is the correct interpretation for the estimated coefficient for APR?

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