- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 3. Analysis of Variance
CFA Practice Question
For a collection of x,y data with r-value = 1, which of the following is false?
B. the linear regression line will have positive slope
C. the residual at each x-value is 0
D. the linear regression line with pass through the point, (mean of the x-values, mean of the y-values)
A. the variation in variable y due to variable x is 1%
B. the linear regression line will have positive slope
C. the residual at each x-value is 0
D. the linear regression line with pass through the point, (mean of the x-values, mean of the y-values)
Correct Answer: A
For an r-value of 1, the variation of the y-variable due to the x-variable is 1 or 100%.
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