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Basic Question 0 of 7
Which of the following could be a multiple linear regression model?
II. Yt = b0 + b1 X1t + et.
III. Yt = b0 + b1 X1t + b2 e(X2t) + et.
I. Yt = b0 + b1 X1t + b2 X2t + et.
II. Yt = b0 + b1 X1t + et.
III. Yt = b0 + b1 X1t + b2 e(X2t) + et.
User Contributed Comments 3
| User | Comment |
|---|---|
| ericczhang | Linear regressions only require that the parameters are linear, i.e. the b values are constant slopes that map the independent variables, which can be non-linear, onto the dependent variable. |
| davcer | also II is not multiple |
| johangw | Do b1 and b2 have to be linear? Or can it be like (b1)square in the multiple linear regression model? |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe the types of investment problems addressed by multiple linear regression and the regression process;
CFA® 2025 Level II Curriculum, Volume 1, Module 1.