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Basic Question 4 of 7

Normality means:

I. the dependent variable must be normally distributed.
II. the independent variable must be normally distributed.
III. the residuals must be normally distributed.

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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

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