- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 3. Analysis of Variance
CFA Practice Question
In comparing the relation of company sales with GDP, your regression software provides the following output:
B. 90
C. 91.
What must be the total number of observations for this study?
A. 88
B. 90
C. 91.
Correct Answer: C
Since the degrees of freedom of the residuals is measured as (n - k - 1) where n is the sample size and k is the number of independent variables, then: (N - 1 - 1) = 89: thus, N must be 91.
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