- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 7. Introduction to Linear Regression
- Subject 2. Estimating the Parameters of a Simple Linear Regression
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? |