CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

What does it mean if p = -1.00?

I. Coefficient of determination equals 1.
II. High values of one variable are associated with low values of the other variable.
III. Dependent variable can be perfectly predicted by the independent variable.
IV. All of the variation in the dependent variable can be accounted for by the independent variable.
A. I, II and III
B. II, III and IV
C. I, II, III and IV
Explanation: All the above are properties or explanations of the coefficient of correlation being equal to -1.0.

User Contributed Comments 2

User Comment
danlan II is true, since we know y=kx+b, and k<0 (because of -1 as correlation coefficient)
pires100 completely forgot that p is the POPULATION correlation coefficient and r is the SAMPLE correlation coefficient. Honestly had no idea what this question was asking.
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