- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 7. Introduction to Linear Regression
- Subject 2. Estimating the Parameters of a Simple Linear Regression
CFA Practice Question
The expected value of Y is 9 and the expected value of X is 3. If X and Y are uncorrelated and you run a regression of Y against X, the intercept term will equal ______.
A. 0
B. 3
C. 9
Explanation: Since the correlation is given to be zero, the slope will be zero. The expected value of the dependent variable is equal to the intercept term when slope equals zero (remember this!!)
User Contributed Comments 1
| User | Comment |
|---|---|
| bansal | regression line will be horizontal as the two variables are not related... |