CFA Level 2 Quantitative Methods - Multiple Regression Part 1 

Hi Chayan. Thanks for the feedback. Those last 4 parts are actually the upper and lower limits of confidence interval itself at 95% confidence level. They are not highlighted in syllabus, because this is what you'll be calculating and it will not be given in questions. Also the 2 upper and lower limits are due to statiscal adjustments that can be made to the regression, but that's beyond the scope of CFA exam. Hope this clarifies

@@moneydecoding2739 Sir, is this upper and lower limit same as the range concept you explained in predicting Y in linear regression video?

@@7february1995 Yes, the upper and lower values represent the confidence interval itself and it can be used not just for Y, but for any testing that is possible using confidence interval. In our specific case these are usable only for testing of the respective slope coefficient

1. Multiple R is actually a statistical indication of correlation between multiple variables. Normal correlation is only for two variables, but this can be for more as well. 2. Standard Error of 30.1144 is actually what we study in the syllabus as Standard Error of Estimate. It gives an indication of the variability of the regression model as a whole 3. Standard error of intercept is not used in financial data as it being a constant value, it has no real use of being tested. We prefer to test values that are capable of changing and intercept term is constant so no analysis required there 4. Significance F is conceptually same as p value. P value is used for t distribution, and Significance F is used for F distribution. Both are indicating the lowest level of significance for rejection as per respective distributions Hope this solves all queries. Let me know if you have any more. Happy to help out

Thank you so much Sir. This explanation was really helpful.

@@moneydecoding2739 Sir, in R square - is R is called correlation?

R is seperate notation for regression and does not relate with correlation

@@moneydecoding2739 Sir, what is R and what is R square signifies in regression? Kindly explain.