Results of Regression Analysis | CFA Level 1 Exam Preparation

Regression Analysis Results

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Question

The results of the regressions using 200 observation on a variable Y against X are as follows:

Coefficient Standard error -

intercept 3.62.1

slope 8.11.3

R square = 49%

The regression equation can be expressed as:

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Explanations

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Explanation

Note that Y is regressed against X, implying that Y is the dependent (left-hand side) variable and X is the independent (right-hand side) variable. The intercept in a regression equals the constant term and the slope coefficient is the multiplier on the independent variable.