where ftj = (estimated) partial regression coefficient of regressor Xj
R2 = R2 in the regression of Xj on the remaining (k — 2) regressions [Note: There are (k — 1) regressors in the k-variable regression model.]
!>/ = £ (Xj — Xj )2 We can also write (7.5.6) as var(ft) =
As you can see from this expression, var(/3;) is proportional to a2 and VIF but inversely proportional to J]*2. Thus, whether var(8j) is large or small r
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