Consider a regression model with predictor variables X1 X2 a

Consider a regression model with predictor variables X1, X2, and X3. If X1 has a VIF value of 2, then the R-Squared value from regressing X1 on X2 and X3 is:

Solution

VIF = 1/(1-R²)

Given, VIF= 2

Thus 1-R²= 1/2

Or R² = 1/2 = 0.5