- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 1. Basics of Multiple Regression and Underlying Assumptions
- Subject 1. A Review of Multiple Linear Regression's Uses
CFA Practice Question
In the multiple regression model Yt = β0 + β1X1t + β2X2t + et, the term β0 represents ______, the term β1 represents ______, and the term et represents ______.
II. The increase in Y with respect to a 1-unit change in X1.
III. The X-intercept.
IV. The increase in Y with respect to a 1-unit change in X2.
V. The error term.
VI. The exponential constant (2.718).
VII. The X-intercept.
I. The Y-intercept.
II. The increase in Y with respect to a 1-unit change in X1.
III. The X-intercept.
IV. The increase in Y with respect to a 1-unit change in X2.
V. The error term.
VI. The exponential constant (2.718).
VII. The X-intercept.
Correct Answer: I, II, V
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