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Basic Question 4 of 8

Examine the following residual by predicted plot. Which assumption is violated if we want to fit a linear regression model?

A. Linearity
B. Independence
C. Normality
D. Homoscedasticity

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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

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.