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David's notes indicate that: "The regressors exhibit perfect multicollinearity if one of the regressors is a perfect linear function of the other regressors. The fourth least squares assumption is that the regressors are not perfectly multicollinear." So, I don't think my example violates the...

Another interesting question is: "what type of correlation are we talking about?" Imperfect multicollinearity is when two or more of the independent variables (regressors) are highly correlated..... Bur what does "highly correlated" really mean? Is this correlation the typical linear...

@ami44 - thank you for your fantastic response and question! Lookin forward to others' thoughts!

Here is a return to a question I asked a few years back, although I now understand why I was mistaken in my question above which began this thread. 1) To address my question above, the MLR assumptions require that the samples themselves be I.I.D and NOT that the independent variables be...

Ooops! I think I wrote @S666 and I meant @S999. Interesting that two members chose these names....

To clarify, I don't understand why BT doesn't make previous year's materials available to subscribers, particularly, if the readings continued from one year to the next, as is the case with the Miller readings. For example, there were notes for Miller's chapters in the 2015 curriculum, so they...

That is right @S666! @David Harper CFA FRM and team are updating last year's notes although I would suggest that BT make previous year's notes available to subscribers! Brian

See this: https://forum.bionicturtle.com/threads/study-notes-miller-chapters-2-3-4-6-7.9199/#post-39257

@David Harper CFA FRM - I know I was kind of all over the place above but could you offer your thoughts so that I can be sure that I am thinking about things correctly? Thanks! Brian

What a crapshoot! I think I get it now. We only need one actual sample of size n. Then, the "expected value" of the sampling distribution of the sample mean is equal to the population mean. This is clear. Again, assume only 1 sample. The variance of the sampling distribution of the sample...

Incidentally, @David Harper CFA FRM also insists on the equality in the null is the related video lecture. I would be curious to know if the formal reasoning for this convention.

Ha! @Aenny - that is very nice of you to say! If I had the necessary commitment to begin with, I wouldn't have had to postpone it!!! Alas, I have work responsibilities and more importantly, 2 children under 4 at home.... I will join you soon with the designation my friend! (I am more than...

The spreadsheets do help with enhancing an understanding of the material, in my opinion, BUT they are oftentimes not really pertinent to exam style questions.

At least you have a chance! ....I didn't even sit for it m since I wasn't prepared....

Yes but not actual credit risk. Rather, perceived credit risk, which is market driven. I'll defer to David since I'm guessing more or less.

Not sure I understand the question exactly but my gut tells me that spread risk is similar to market risk because it is based on market prices - and more importantly, based on market "expectations" of future credit risk.

Thanks @Aenny - that is totally reasonable. What is a bit strange to me is the degree to which my instructors have forced us to remember the convention of equality in the null (I also required my students to do the same when I taught statistics!) I expect that there are always exceptions but...

Interestingly, I have always been told that the null hypothesis contains the equality....EVERY TIME! Yet, what do we see in formula 5.11 in Miller's chapter 5? ...an equality in the alternative hypothesis. What is the deal?

After reading some other posts on this topic, I fear I may be incorrect on the definition of n! If we have m random samples of size n, what is the mu-hat and what is sigma-hat? Say we have a sample of 10 and we repeat the 100 times, then n=10 and m=100. Does this mean we have 100 different...

Now I am confused again....