Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the difference between VIF and Tolerance?

April 26, 2017difference tolerance vif

0

10 Posted

What is the difference between VIF and Tolerance?

1 Answer

0

10 Posted

Tolerance and VIF give you the exact same information. Tolerance = 1/VIF. When you run VIF in Stata, it will give you the information in both forms. If you are concerned about correlations between IVs that exceed .85 (a fairly conservative criteria), then: Any VIF value ABOVE 3.6 raises concern about multicollinearity. Any tolerance value BELOW .2275 raises concern about multicollinearity. If you are concerned about correlations between IVs that exceed .95 (a more liberal criteria), then: Any VIF value ABOVE 10 raises concern about multicollinearity. Any tolerance value BELOW .1 raises concern about multicollinearity.