- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 1. Estimation of the Simple Linear Regression Model
CFA Practice Question
Which of the following statements is false?
B. the regression line always passes through the point (average of x-values, average of y-values).
C. the regression line must pass through at least one of the data points.
D. the percentage of variation in variable y due to variable x is r2.
A. the residual at an x-value is the observed value minus the predicted value.
B. the regression line always passes through the point (average of x-values, average of y-values).
C. the regression line must pass through at least one of the data points.
D. the percentage of variation in variable y due to variable x is r2.
Correct Answer: C
The regression need not pass through any of the data points.
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