CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

For a collection of x,y data with r-value = 1, which of the following is false?

A. the variation in variable y due to variable x is 1%
B. the linear regression line will have positive slope
C. the residual at each x-value is 0
D. the linear regression line with pass through the point, (mean of the x-values, mean of the y-values)
Correct Answer: A

For an r-value of 1, the variation of the y-variable due to the x-variable is 1 or 100%.

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