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Basic Question 6 of 7
Which of the following is (are) true of the slope of the least-squares regression line?
II. the square of the slope equals the fraction of the variation in the dependent variable that is explained by the independent variable.
III. It is unitless.
I. It has the same sign as the correlation coefficient.
II. the square of the slope equals the fraction of the variation in the dependent variable that is explained by the independent variable.
III. It is unitless.
User Contributed Comments 2
| User | Comment |
|---|---|
| Sandy69 | Since information is non - material hence can be used |
| danlan | Do not be confused by correlation coefficient and slope of the regression line. Correlation coefficient is the geometric average of two slopes (exchange dependant and independant variables), and has same sign as each slope, but the value can be different. |
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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.