- 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
The slope coefficient in a regression measures:
A. The percentage change in the dependent variable caused by a 1% change in the independent variable.
B. The rate at which the dependent variable changes with respect to the independent variable.
C. The change in the independent variable caused by a unit change in the dependent variable.
Explanation: In a univariate regression, the slope coefficient gives the change in the dependent variable caused by a unit change in the independent variable. It thus measures the rate at which the dependent variable changes with respect to the independent variable.
User Contributed Comments 5
| User | Comment |
|---|---|
| Alastair | univariate regression = linear regression |
| JalaniN | wht about c? I think b is also right |
| patsy | no. percentage change will depend on the constant also. slope indicates rate of change |
| grezavi | think y=mx+b y dep x inde m slope b intercept |
| amigosu | C is not right because dependent and independent are swapped |