Chapter 10: Simple Linear Regression

In this section

• The Least Squares Criterion and Estimating Regression Coefficients
  The Least Squares Criterion and Estimating Regression Coefficients (CFA Level 1): Foundations of Simple Linear Regression, Regression Setup, and Least Squares Criterion. Key definitions, formulas, and exam tips.
• Assumptions of the Simple Linear Regression Model
  Assumptions of the Simple Linear Regression Model (CFA Level 1): Why These Assumptions Matter, Linearity in Parameters, and Random Sampling. Key definitions, formulas, and exam tips.
• Residual Analysis and Model Diagnostics
  Residual Analysis and Model Diagnostics (CFA Level 1): Understanding Residuals, Why Do We Care So Much?, and Common Diagnostic Plots. Key definitions, formulas, and exam tips.
• Measures of Fit (R², Standard Error of Estimate, ANOVA)
  Measures of Fit (R², Standard Error of Estimate, ANOVA) (CFA Level 1): Coefficient of Determination (R²) and Overfitting Consideration. Key definitions, formulas, and exam tips.
• Prediction Intervals and Functional Forms of Simple Linear Regressions
  Prediction Intervals and Functional Forms of Simple Linear Regressions (CFA Level 1): Prediction Intervals vs Confidence Intervals for the Mean and Understanding the Difference. Key definitions, formulas, and exam tips.
• Hypothesis Testing on Slope and Intercept
  Hypothesis Testing on Slope and Intercept (CFA Level 1): Recap: Simple Linear Regression Setup, Testing the Slope (\\(\beta_1\\)) for Significance, and Formulating the Hypotheses. Key definitions, formulas, and exam tips.