CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

Which of the following could be a multiple linear regression model?

I. Yt = b0 + b1 X1t + b2 X2t + et.
II. Yt = b0 + b1 X1t + et.
III. Yt = b0 + b1 X1t + b2 e(X2t) + et.
Correct Answer: I only

II is a linear model, but not a multiple linear model. III has an exponential component.

User Contributed Comments 2

User Comment
ericczhang Linear regressions only require that the parameters are linear, i.e. the b values are constant slopes that map the independent variables, which can be non-linear, onto the dependent variable.
davcer also II is not multiple
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