CFA Practice Question

There are 208 practice questions for this study session.

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 ______.

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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