小編導讀:您還會為FRM考試感到煩惱嗎?高頓網(wǎng)校精品題庫,包含歷年真題,模擬試題等題型,題題結合考試大綱貼近考試考點。堅持每天做題練習,一定可以提升備考效果,為贏取屬于自己的美好明天加油吧!馬上開始練習 >>  Assume an analyst performs two simple regressions. The first regression analysis has an R-squared of 0.90 and a slope coefficient of 0.10. The second regression analysis has an R-squared of 0.70 and a slope coefficient of 0.25. Which one of the following statements is most accurate?
  A. Results of the second analysis are more reliable than the first analysis.
  B. The influence on the dependent variable of a one unit increase in the independent variable is 0.9 in the first analysis and 0.7 in the second analysis.
  C. The influence on the dependent variable of a one unit increase in the independent variable is 0.7 in the first analysis and 0.9 in the second analysis.
  D. The first regression has more explanatory power than the second regression.
  Answer:D
  The coefficient of determination (R-squared) is the percentage of variation in the dependent variable explained by the variation in the independent variable. The larger R-squared (0.90) of the first regression means that 90 percent of the variability in the dependent variable is explained by variability in the independent variable, while 70 percent of that is explained in the second regression. This means that the first regression has more explanatory power than the second regression. Note that the Beta is the slope of the regression line and doesn’t measure explanatory power.