CFA Practice Question

There are 208 practice questions for this study session.

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
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