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Variance Inflation Factor Calculator

Formula

The formula to calculate the Variance Inflation Factor (VIF) is:

$VIF = \frac{1}{1 - R^2}$

Where:

A variance inflation factor is defined as the quotient of the variance in a model with multiple terms by the variance in a model with one term alone.

Let's consider an example:

Using the formula to calculate the Variance Inflation Factor:

$VIF = \frac{1}{1 - 0.8} = 5$

This demonstrates that with an R² of 0.8, the variance inflation factor would be 5.