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