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Basic Question 4 of 7
Normality means: I. the dependent variable must be normally distributed.
II. the independent variable must be normally distributed.
III. the residuals must be normally distributed.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
explain the assumptions underlying the simple linear regression model, and describe how residuals and residual plots indicate if these assumptions may have been violated
CFA® 2025 Level I Curriculum, Volume 1, Module 10.