Variable Inflation Factor. How the VIF is computed. A variance inflation factor VIF detects multicollinearity in regression analysis.
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One can use add_constant from statsmodels to add the required constant to the dataframe before passing its values to the function. If any terms in an unweighted linear model have more than 1 df then generalized variance-inflation factors Fox and Monette 1992 are calculated. An alternative and more useful approach is to examine what are known as the variance inflation factors VIF of the explanatory variables.
Jun 03 2020 Variance inflation factor VIF is used to detect the severity of multicollinearity in the ordinary least square OLS regression analysis.
A variance inflation factor exists for each of the predictors in a multiple regression model. It makes the coefficient of a variable consistent but unreliable. Multicollinearity inflates the variance and type II error. We can detect the multicollinear features in our data using the variance inflation factor in python.
