Multicoliniarity

Posted by David Moore-10 on Mar 08, 2011; 1:41pm
URL: http://spssx-discussion.165.s1.nabble.com/Multicoliniarity-tp3413936.html

Dear Listers,

I am hoping that someone might be able to help with a problem I am having.
I am running a few regression models at the moment and an wondering about
multicoliniarty, I believe from what I've read that ideally we need a VIF
<10? this is ok for the first stage of our model however at a second stage
we have entered some interaction terms (created from the first stage of the
model) understandably these correlate highly with some of the other
variables (as they are products of these) resulting in VIF's as high as 40
what does this mean for the analysis, can we continue or is there something
I am missing.

Best
David

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