- 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

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**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.

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**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 |