- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 2. Multiple Regression
- Subject 4. The Standard Error of Estimate in Multiple Linear Regression Model
CFA Practice Question
Which of the following statements is (are) true?
II. The standard error of estimate is equal to the standard error of the residual.
III. If there are k independent variables, and t observations, then the degrees of freedom associated with the residual is k - t - 1.
I. Error terms and residuals are the same concept.
II. The standard error of estimate is equal to the standard error of the residual.
III. If there are k independent variables, and t observations, then the degrees of freedom associated with the residual is k - t - 1.
Correct Answer: I and II
The degrees of freedom should be t - k - 1.
Error terms is just another name for residuals.
The degrees of freedom should be t - k - 1.
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