- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 5. Multiple Regression
- Subject 1. Multiple Linear Regression

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**CFA Practice Question**

How many parameters are in a multiple linear regression equation?

A. 1

B. 2

C. None of these answers is correct.

**Explanation:**The number of parameters in a multiple linear regression equation is equal to the number of independent variables plus one. As the number of independent variables is not specified in this question, we do not know the exact number of parameters.

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**User Contributed Comments**
4

User |
Comment |
---|---|

hizmo |
This is a stupid question. Multiple regression is when parameters >= 2. Since 2 >= 2 and question refers to " a multiple linear regression equation" |

adidas |
No hizmo. Here is a linear regression equation: Y = 1X + 2Z + 3M + 4N. 4 parameters! So you need to know the number of independent variables and parameters. |

krisscfa |
The number of parameters in a multiple linear regression equation is equal to the number of independent variables plus one. As the number of independent variables is not specified in this question, we do not know the exact number of parameters. |

jsc298 |
I think the point is that multiple regression implies at least two independent variables, so there are a minimum of three parameters. |