Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Basic Question 0 of 11

Some of the following assumptions of the linear regression model are not satisfied when we work with time series. They are:

I. Linearity of the relationship between dependent and independent variables.
II. Independence of the errors (no serial correlation).
III. Homoscedasticity (constant variance) of the errors.
IV. Normality of the error distribution.

User Contributed Comments 0

You need to log in first to add your comment.
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

Subject 1. Trend Models