- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 5. Multiple Regression
- Subject 3. Confidence Intervals for Regression Coefficients in a Multiple Regression

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**CFA Practice Question**

In a multiple regression model based on 30 observations and 3 independent variables, you have the estimate of b

_{1}equal to 1.35. The standard error of this estimate is .13. Find the 95% confidence interval for the parameter b_{1}.

A. [1.083, 1.617].

B. [1.084, 1.616].

C. [1.128, 1.572].

**Explanation:**The degrees of freedom equals 26. Therefore, the critical value of t for a 95% confidence interval will be 2.056 (the 5% probability will be split between the tails). Thus, the confidence interval will be [1.35 - 0.13 x 2.056, 1.35 + 0.13 x 2.056] = [1.083, 1.617].

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**User Contributed Comments**
1

User |
Comment |
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malawyer |
DONG! MULTIPLE regression |