- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 4. Introduction to Linear Regression
- Subject 3. The standard error of estimate and the coefficient of determination
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 |