CFA Level 2 2020: Quantitative Methods- Dependent and Independent Variable

This video is targeted towards CFA Level 2 2020 candidates preparing for CFA Level 2 2020: Quantitative Methods- Dependent and Independent Variable

Linear Regression helps understand the relationship between an independent variable (X) and a dependent variable (Y).
Example 1: How does interest rates effect stock Prices? ( Interest Rates is independent variable and Stock Prices is dependent variable)

Example 2: How does consumption habits effect interest rates? ( Consumption habits is independent variable and interest rates is dependent variable)

Regression Analysis
Cross Sectional: numerous observations of X and Y for same time period
Time Series: Many Observations from different time periods.

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