- 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
For a data collection of x and y scores, if a straight line with a negative slope fits the data perfectly then
B. the correlation coefficient is -1
C. the y-intercept is (0, -1)
A. the slope value is 0.5
B. the correlation coefficient is -1
C. the y-intercept is (0, -1)
Correct Answer: B
A correlation coefficient of -1 indicates that the x-y data pairs are such that a straight line with a negative slope fits the data perfectly.
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