Correlation and Regression

5 minutes 5 Questions

In the Chartered Financial Analyst (CFA) Level 1 curriculum, Quantitative Methods cover essential statistical tools used in finance, with correlation and regression being fundamental concepts. Correlation measures the strength and direction of a linear relationship between two variables. It is quan…

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CFA Level 1 - Correlation and Regression Example Questions

Test your knowledge of Correlation and Regression

Question 1

In a regression analysis with a single independent variable, if the correlation coefficient between the independent variable and the dependent variable is 0.8, what is the coefficient of determination (R-squared)?

Question 2

In a regression analysis, the slope coefficient measures the:

Question 3

In a regression analysis, the correlation coefficient between the independent variable and the dependent variable is found to be -0.92. Which of the following is the correct interpretation of this correlation coefficient?

More Correlation and Regression questions
22 questions (total)