- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 3. Analysis of Variance
CFA Practice Question
In comparing the relation of company sales with GDP, your regression software provides the following output:
What must be the coefficient of determination of this regression equation:
A. 73.4%
B. 87.6%
C. 89.0%
Explanation: R2 = RSS/TSS = (3,518.22)/(3,518.22 +437.699) = 89%.
User Contributed Comments 1
| User | Comment |
|---|---|
| dariorf7 | Remember that TSS = RSS + SSE and don't screw up like I did |