Part correlations and multicollinearity?

Posted by Anter on Jul 27, 2012; 5:06pm
URL: http://spssx-discussion.165.s1.nabble.com/Part-correlations-and-multicollinearity-tp5714504.html

Hello to all,    I have a regression model where two variables are highly correlated, at ~ .8, and the Tolerance is low .2 - .3 and VIF high, ~4-5. Does it mean that the variables don’t have such a large independent contribution to explaining the outcome? Even if there seems to be multicollinearity for the two variables, these same two variables have large part and semipartial correlation coefficients, the largest amongst all 10 variables included (5 controls). Can I say that despite the multicollinearity, each variable explains a unique proportion in the outcome only based on these part correlations? I have read somewhere that <The more “tolerant” a variable is (i.e. the less highly correlated it is with the other IVs), the greater its unique contribution to R2 will be>, but the case here is reverse, these variables have low tolerance but high contribution to explaining the criterion. Is this interpretation correct?   Thank you in advance.   Andra Andra-Florina Toader MA Student, www.fpse.ro E-mail: [hidden email] Tel.:[phone]