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Basic Question 8 of 15

Which of the following statements is false?

A. the residual at an x-value is the observed value minus the predicted value.
B. the regression line always passes through the point (average of x-values, average of y-values).
C. the regression line must pass through at least one of the data points.
D. the percentage of variation in variable y due to variable x is r2.

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe a simple linear regression model, how the least squares criterion is used to estimate regression coefficients, and the interpretation of these coefficients

CFA® 2025 Level I Curriculum, Volume 1, Module 10.