- CFA Exams
- CFA Exam: Level II 2021
- Study Session 2. Quantitative Methods (1)
- Reading 4. Introduction to Linear Regression
- Subject 1. Linear regression

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**CFA Practice Question**

Which of the following statements is false?

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 r

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 r

^{2}.Correct Answer: C

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

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