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Basic Question 2 of 8
Which of the following is not an assumption underlying multiple linear regression?
B. The explanatory variables are controllable.
C. The underlying distribution of the error terms is standard normal.
A. Linear relationship implies linearity in the parameters.
B. The explanatory variables are controllable.
C. The underlying distribution of the error terms is standard normal.
User Contributed Comments 1
| User | Comment |
|---|---|
| mazen1967 | standard normal segma=1 av=0 |
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
Learning Outcome Statements
explain the assumptions underlying a multiple linear regression model and interpret residual plots indicating potential violations of these assumptions.
CFA® 2025 Level II Curriculum, Volume 1, Module 1.