Variable Prediction in Finance | CFA Level 1 Exam Preparation

Variable Prediction

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Question

What is the variable used to predict the value of another called?

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Explanations

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A. B. C. D. E.

E

The dependent variable is the variable Y which is being predicted by the X variable, the independent variable. The regression is written as Y = a + bX. The letter

"a" is the Y intercept and b is the slope of the line.