I have a question on how to detect multicollinearity?
As per my understanding, F stat should be significant, R2 should be high and individual coeff. should not be significant.
In order for multicollinearity to be present, are all 3 requirements (high R2, significant F-stat, insignificant t-tests) need to be satisfied?
2. What is the threshold to consider R2 as a high value?
3. in below example one coefficient is insignificant, whereas one is significant. For multicollinearity to be present are all coefficients need to be insignificant?
R2 is 0.414
F stat is significant
out of 2 coeff, 1 coefficient is significant
correlation between 2 independent variables is 0.015
CFA online practice question no 4 says that multicollinearity is not present. But why?
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