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When You Write Your Rent Cheque on Your Credit Union

question 12

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When you write your rent cheque on your credit union account and your landlord deposits it in her account at the Bank of Montreal,what will be the impact in the banking system?


Definitions:

Standard Errors

The standard deviation of the sampling distribution of a statistic, commonly used in estimating the margin of error.

Operating Characteristic Curve

A graph that shows the capability of a test to distinguish between different states, such as defective and non-defective items.

Type II Error

The statistical mistake of failing to reject a false null hypothesis, or the error of not detecting an effect or difference when one truly exists.

Type I Error

Incorrectly dismissing a true null hypothesis as false.

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