- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 1. Estimation of the Simple Linear Regression Model

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**CFA Practice Question**

What is the variable used to predict the value of another called?

A. Dependent

B. Independent

C. Correlation

**Explanation:**The dependent variable is the variable Y which is being predicted by the X variable, the independent variable. The regression is written as Y = a + bX. The letter "a" is the Y intercept and b is the slope of the line.

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