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Basic Question 0 of 7

A financial economist runs the following regression:

Demand for cars = alpha + beta*income level + error

In this regression, the demand for cars is ______ variable and the income level is ______ variable.

A. dependent; dependent.
B. dependent; independent.
C. independent; independent.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain the relationship between normal and lognormal distributions and why the lognormal distribution is used to model asset prices when using continuously compounded asset returns

CFA® 2025 Level I Curriculum, Volume 1, Module 6.