- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 3. Analysis of Variance
CFA Practice Question
Which formula measures the sum of squares regression?
B. ∑(Y-hati - Y-bar)
C. ∑(Yi - Y-hati)
A. ∑(Yi - Y-bar)
B. ∑(Y-hati - Y-bar)
C. ∑(Yi - Y-hati)
Correct Answer: B
It is the explained variation. The estimated parameters in a simple linear regression model minimize the sum of the squared errors, which is C.
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