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Basic Question 4 of 8

Examine the following residual by predicted plot. Which assumption is violated if we want to fit a linear regression model?

A. Linearity
B. Independence
C. Normality
D. Homoscedasticity

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Craig Baugh

Craig Baugh

Learning Outcome Statements

explain the assumptions underlying a multiple linear regression model and interpret residual plots indicating potential violations of these assumptions.

CFA® 2025 Level II Curriculum, Volume 1, Module 1.