- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 4. Introduction to Linear Regression
- Subject 7. Analysis of variance (ANOVA)

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**CFA Practice Question**

In comparing the relation of company sales with GDP, your regression software provides the following output:

B. 90

C. 91.

What must be the total number of observations for this study?

A. 88

B. 90

C. 91.

Correct Answer: C

Since the degrees of freedom of the residuals is measured as (n - k - 1) where n is the sample size and k is the number of independent variables, then: (N - 1 - 1) = 89: thus, N must be 91.

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