Choose the Statement That Is Incorrect

question 6

Multiple Choice

Choose the statement that is incorrect.

• A)The Bank of Canada's choice of policy instrument is the overnight loans rate.
• B)When the Bank of Canada wants to slow inflation, it raises the overnight loans rate.
• C)The Bank has established 12 fixed dates each year on which it announces its overnight rate target for the coming period.
• D)Recently, the overnight loans rate has been at historically low levels because the Bank is leaning in the direction of avoiding recession.
• E)The overnight rate was a bit more than 8 percent a year in 1995.

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Definitions:

Correlation Coefficient

Quantitative assessment designed to determine the magnitude and directionality of a linear association between two variables.

Regression Analysis

A statistical method for estimating the relationships among variables, particularly the relationship between a dependent variable and one or more independent variables.

SST

Total Sum of Squares, a measure in statistical analysis that quantifies the total variation within a dataset.

SSR

The sum of squared deviations of predicted values from the mean of observed values in regression analysis.