- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 5. Multiple Regression
- Subject 7. Testing Whether All Population Regression Coefficients are Equal to Zero
CFA Practice Question
Given n = 30, k = 4, MSR = 60, SSE = 75, the F-statistic is:
A. 1.25
B. 0.8
C. 20
Explanation: F = MSR/[SSE/(n - k - 1)] = 60 / [75/25] = 20.
User Contributed Comments 4
| User | Comment |
|---|---|
| katybo | tricky one! |
| richmondo | Yes - I got confused between RSS and MSR |
| chriswwu | useful rule of thumb: typical F-stat in usually a larger number into the teens, and if you have to blindly guess or check, try 2+. |
| chriswwu | i.e., double and triple check if you F-stat answer is a small number |