Module 3

VIF Calculation

Calculate variance inflation factors for education, experience, and tenure.

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Notebook lab guide

Related dataset

WAGE1

Estimated time

25 to 40 min

Packages

pandas, numpy, statsmodels, patsy

Expected output

Printed Python results that can be compared with the lesson explanation.

Learning goals

Common errors

File not found: check that WAGE1.DTA is installed or use the course data folder.
Package import error: use the browser notebook first, then download for local Jupyter if your local packages differ.
Column name error: compare your variable names with the dataset variables listed for this notebook.

Dataset path helper

import pandas as pd

df = pd.read_stata("/data/WAGE1.DTA")
df.head()

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