CFA Level 1 Regression Analysis | Y-Value Calculation for X = -3

Calculate Y-Value for X = -3 using Regression Analysis

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Question

Given the following points: (-2, 0), (-1,0), (1, 1) and (2, 3)

If the regression equation is Y' = 2 - .4X, what is the value of Y when X = -3?

Answers

Explanations

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A. B. C. D. E.

B

Y' = 2 - 0.4*(-3) = 2 + 1.2 = 3.2

To find the value of Y when X = -3 using the regression equation Y' = 2 - 0.4X, we need to substitute the value of X into the equation and solve for Y.

Given the regression equation Y' = 2 - 0.4X, we substitute X = -3 into the equation:

Y' = 2 - 0.4(-3) Y' = 2 + 1.2 Y' = 3.2

Therefore, when X = -3, the value of Y is 3.2.

The correct answer is B. 3.2.