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Basic Question 1 of 3

In the multiple regression model Yt = β0 + β1X1t + β2X2t + et, the term β0 represents ______, the term β1 represents ______, and the term et represents ______.

I. The Y-intercept.
II. The increase in Y with respect to a 1-unit change in X1.
III. The X-intercept.
IV. The increase in Y with respect to a 1-unit change in X2.
V. The error term.
VI. The exponential constant (2.718).
VII. The X-intercept.

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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

Tamara Schultz

Learning Outcome Statements

describe the types of investment problems addressed by multiple linear regression and the regression process;

CFA® 2025 Level II Curriculum, Volume 1, Module 1.