- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 1. Estimation of the Simple Linear Regression Model
CFA Practice Question
For a data collection of x and y scores, if a straight line with a positive slope fits the data perfectly then
A. the y-intercept is (0, 1)
B. the correlation coefficient is +1
C. the slope value is 0.5
Explanation: A correlation coefficient of +1 indicates that the x-y data pairs are such that a straight line with a positive slope fits the data perfectly.
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