The Difference Between the Bank of Canada Rate and the Prime

question 112

True/False

The difference between the Bank of Canada rate and the prime rate is based on the supply-and-demand relationships for short-term funds.

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Definitions:

T-Distribution

A probability distribution that is used in hypothesis testing for small sample sizes, where the population standard deviation is unknown.

Random Variable

A variable whose values depend on outcomes of a random phenomenon, with each outcome having a certain probability.

Confidence Interval

A breadth of values, derived from sample observations, with a high chance of containing an unknown population parameter's value.

Level Of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted by alpha.