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Basic Question 5 of 7
Examine the following residual by predicted plot. Which assumption is violated if we want to fit a linear regression model?
A. Linearity
B. Independence
C. Normality
D. Homoscedasticity
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain the assumptions underlying the simple linear regression model, and describe how residuals and residual plots indicate if these assumptions may have been violated
CFA® 2025 Level I Curriculum, Volume 1, Module 10.