CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

The results of the regressions using 200 observations on a variable Y against X are as follows:

Coefficient | Standard error
intercept 3.6 | 2.1
slope 8.1 | 1.3
R square = 49%
If an observation on X indicates X = 5 the estimated value of Y would be ______.
A. 44.1
B. 26.1
C. 40.5
Explanation: From the information given, the regression equation is Y = 3.6 + 8.1X + error term. The expected value of the error is zero. Hence, when X = 5, the estimated value of Y equals 3.6 + 8.1*5 = 44.1.

User Contributed Comments 1

User Comment
krisscfa forgot intercept
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