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Basic Question 1 of 7
Which of the following is not an assumption underlying linear regression?
B. The explanatory variable is controllable.
C. The underlying distribution of the error terms is standard normal.
A. Linear relationship implies linearity in the parameters.
B. The explanatory variable is controllable.
C. The underlying distribution of the error terms is standard normal.
User Contributed Comments 1
| User | Comment |
|---|---|
| mazen1967 | standard normal segma=1 av=0 |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain the assumptions underlying the simple linear regression model, and describe how residuals and residual plots indicate if these assumptions may have been violated
CFA® 2026 Level I Curriculum, Volume 1, Module 10.