CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

Given the data {(1,5), (6, 15)}, the regression line is

A. y = 2x + 3
B. y = (1/2)x + 10
C. y = 0.35x + 7
Correct Answer: A

Because there are only two data points, a straight line fits the data perfectly. For the two points, the slope is m = (15 - 5)/(6 - 1) = 2. Using the point-slope form we get: y - 5 = 2(x - 1) or y = 2x +3.

User Contributed Comments 1

User Comment
davcer or simply substitute the values, (2*1)+3 =5 and (2*6)+3=15
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