We have used multi-linear regression (stepwise) approach to perform spatial modeling with parameters derived from Remote Sensing data. The outcome of the statistically significant components produce respectable RMSE with acceptable R Square and adjusted R Square. However, it is notable that the identified significant parameters violate VIF and Tolerance range in multi-collinearity diagnostics. The produced model is closed to reality with very good RMSE value.
In this backdrop, can we use this model by ignoring VIF and tolerance statistics because, in spatial domain, co-relation between variables is found to be a common phenomenon.