To test for multicollinearity in EViews, you can use the Variance Inflation Factor (VIF) and correlation analysis. Here’s how to do it:
- Variance Inflation Factor (VIF):
- Open your dataset in EViews.
- Click on “Quick” > “Group Statistics” > “Correlations.”
- Select the independent variables you want to check for multicollinearity.
- Calculate the VIF for each variable. A VIF value greater than 10 indicates severe multicollinearity
- Correlation Analysis:
- Similarly, you can also check for multicollinearity by examining the correlation matrix of the independent variables. High pairwise correlations indicate potential multicollinearity
These methods will help you detect and address multicollinearity in your regression analysis using EViews.
