CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

A linear regression is ______ relationship.
A. a causal
B. an acausal
C. a functional
Explanation: It is important to remember that a regression equation does not imply a causal relationship between the dependent and the independent variables. It simply postulates a functional i.e., an associative relationship between them.

User Contributed Comments 1

User Comment
StJohnDale functional relationship - associates 1 input with 1 output and I think a casual relationship merely refers to cause and effect relationship?
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