JoeyDVivre

Wanda Brunner, CFA, is working on a regression analysis based on publicly available macroeconomic time-series data. The most important limitation of regression analysis in this instance is:

A) the error term of one observation is not correlated with that of another observation.

B) limited usefulness in identifying profitable investment strategies.

C) low confidence intervals.

---

Regression analysis based on publicly available data is of limited usefulness if other market participants are also aware of and make use of this evidence.