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Basic Question 4 of 11
An analyst is reviewing the following data produced after a regression analysis:
Regression Sum of the Squares (RSS) = 437
Sample data included 25 observations.
B. 91.8% of the variation in the dependent variable may be explained by the regression model.
C. 95.8% of the variation in the dependent variable may be explained by the regression model.
Total Sum of Squares (TSS) = 476
Sum of the Squares of the Errors (SSE) = 39
Regression Sum of the Squares (RSS) = 437
Sample data included 25 observations.
Using the analysis of variance (ANOVA) approach, which of the following statements would be true?
A. 91.1% of the variation in the dependent variable may be explained by the regression model.
B. 91.8% of the variation in the dependent variable may be explained by the regression model.
C. 95.8% of the variation in the dependent variable may be explained by the regression model.
User Contributed Comments 1
| User | Comment |
|---|---|
| quanttrader | RSS = explained variation SSE = unexplained variation |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
evaluate how well a multiple regression model explains the dependent variable by analyzing ANOVA table results and measures of goodness of fit;
CFA® 2025 Level II Curriculum, Volume 1, Module 2.