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Basic Question 1 of 15

A financial economist runs the following regression:

Demand for cars = alpha + beta*income level + error

In this regression, the demand for cars is ______ variable and the income level is ______ variable.

A. dependent; dependent.
B. dependent; independent.
C. independent; independent.

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe a simple linear regression model, how the least squares criterion is used to estimate regression coefficients, and the interpretation of these coefficients

CFA® 2025 Level I Curriculum, Volume 1, Module 10.