Thanks again HLSmith. Sorry, did not mean to imply that you said Pearson is inappropriate. I did find another thread discussing VIF that was useful but am not sure how to attach it to this post so I am just going to include the title here so that anyone can do a search on it on this forum. It is called "Logistic regression detection of multicollinearity- is VIF applicable?"

That post describes clearly what the VIF is. So is my understanding correct that since the VIF is based on the concept of variance, which is in turn based on the concept of R2, ie, the variation, it does not matter if the independent variables are dummy (dichotomous) variables? But how is that different from the Pearson correlation coefficient then which is also based on the concept of variances? Why is the VIF more appropriate?

By the way, I looked at all the posts in the forum about VIF's and could not find any external reference that said why VIF is appropriate for dummy variables. Thank you very much!!!