- CFA Exams
- CFA Exam: Level II 2021
- Study Session 2. Quantitative Methods (1)
- Reading 4. Introduction to Linear Regression
- Subject 6. The predicted value of the dependent variable

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**CFA Practice Question**

If you run linear regression on a set x-y data and obtain the results shown at the right then the linear regression line must pass through the point (______, ______).

B. (53.57, 58.92)

C. (-1.23, -0.92)

A. (124.81, -1.23)

B. (53.57, 58.92)

C. (-1.23, -0.92)

Correct Answer: B

The graph of the linear regression line always passes through the point (average of x-values, average of the y-values). So, the graph of the linear regression line must pass through (53.57, 58.92).

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