- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 1. Estimation of the Simple Linear Regression Model

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**CFA Practice Question**

For a set of x-y data, if the regression equation is y = 100 - 3x and the mean of the x-values is 20 then the mean of the y-values is ______.

B. 40

C. -3

A. 30

B. 40

C. -3

Correct Answer: B

Because the linear regression line must pass through the point (mean of the x-values, mean of the y-values). If the mean of the x-values is 20 the mean of the y-values is y = 100 - 3(20) = 40.

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