CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

Which of the following statements is false?

A. the residual at an x-value is the observed value minus the predicted value.
B. the regression line always passes through the point (average of x-values, average of y-values).
C. the regression line must pass through at least one of the data points.
D. the percentage of variation in variable y due to variable x is r2.
Correct Answer: C

The regression need not pass through any of the data points.

User Contributed Comments 0

You need to log in first to add your comment.