I have classified (label encoding) independent variables. To calculate VIF, I converted them to dummy variables. When I calculate VIF for dummy variables, there are VIF values for each class of an independent variable. If I calculate the average of VIF values of all classes of an independent variable, can I say it is the VIF value of that independent variable?
Asked
Active
Viewed 14 times
0
-
Please clarify your specific problem or provide additional details to highlight exactly what you need. As it's currently written, it's hard to tell exactly what you're asking. – Community May 24 '22 at 15:24
-
1Does this answer your question? VIF for Categorical Variable with More Than 2 Categories That page describes the best way to handle VIF for a multi-level categorical predictor such as yours. Your averaging method isn't appropriate, as the VIF would depend on which level of the predictor you used as reference and omitted from the dummies. – EdM May 24 '22 at 15:56