Can Variance Inflation factors be used to detect Heterosceda

Can Variance Inflation factors be used to detect Heteroscedasticity problem in the regression analysis

Solution

Variance inflation factors (VIF) measure how much the variance of the estimated regression coefficients are inflated as compared to when the predictor variables are not linearly related.

Use to describe how much multicollinearity (correlation between predictors) exists in a regression analysis. Multicollinearity is problematic because it can increase the variance of the regression coefficients, making them unstable and difficult to interpret.

Use the following guidelines to interpret the VIF: