- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 2. Assumptions of the Simple Linear Regression Model
CFA Practice Question
Normality means: I. the dependent variable must be normally distributed.
II. the independent variable must be normally distributed.
III. the residuals must be normally distributed.
Correct Answer: III only
For any value x, the error term has a normal distribution.
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