Risk
Regression
Linear Regression, Multiple Variables, Dummy Variables, and Diagnostics
4 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning
About This Course
Course Information
In this course, we will discuss linear regression, regression with multiple variables and regression diagnostics.
Certificate on Completion
This course is made up of videos, questions and additional reading materials and accounts for 4 units of CPD. One unit is the equivalent of one hour of learning. A certificate will be issued once you have completed all 4 units.
Course Sections
This course is made up of the following sections:
- Linear Regression (video + quiz)
- Regression with Multiple Explanatory Variables (video + quiz)
- Omitted Variables (video + quiz)
- Correlation and Outliers (video + quiz)
- Additional reading materials
What You Will Learn
- Describe the components of a linear regression model: dependent variable, intercept, slope coefficient, independent variable, and error term
- Apply dummy variables to incorporate qualitative relationships into regression models using binary (0/1) encoding
- Explain R-squared (coefficient of determination) as a measure of goodness of fit and what it tells you about model quality
- Identify the three conditions required for linear regression: linear relationship, additive error term, and observable explanatory variables
- Describe how to transform nonlinear equations into linear form using natural logarithms
- Apply regression analysis to portfolio hedging by estimating market exposure and calculating hedge ratios
Who This Course Is For
- Risk analysts and quantitative professionals who use regression in financial modelling and risk measurement
- Finance professionals preparing for FRM exams who need to understand regression analysis and its diagnostics
- Portfolio managers and fund analysts who use regression to decompose returns into factor exposures
Prerequisites
- Basic statistics knowledge (mean, variance, standard deviation, correlation)
- Familiarity with mathematical notation and basic algebra
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Course Details
CPD Credits4
CertificateYes
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CPD certificate on completion
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