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Basic Question 15 of 15

What is the effect of a violation of the classical regression assumptions?

I. Invalid hypothesis test.
II. Low predictive power of the model.
III. Invalid confidence intervals.

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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® 2024 Level I Curriculum, Volume 1, Module 10.