CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

For a data collection of x and y scores, if the r-value is -0.8 then the percentage of variation in variable y due to variable x is ______.

A. 64%
B. -0.8%
C. -80%
Correct Answer: A

The percentage of variation in variable y due to variable x is r2. An r-value of -0.8 yields r2 = 0.64 or 64%. So, the percentage of variation in variable y due to variable x is 64%.

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