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Cindy Ho, VP of Finance at Discrete Components, Inc

question 27

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Cindy Ho, VP of Finance at Discrete Components, Inc.(DCI) , theorizes that the discount level offered to credit customers affects the average collection period on credit sales.Accordingly, she has designed an experiment to test her theory using four sales discount rates (0%, 2%, 4%, and 6%) .First, she classified DCI's credit customers into three categories by total assets (small, medium, and large) .Then, she randomly assigned four customers from each category to a sales discount rate.In Cindy's experiment "average collection period" is ________.


Definitions:

Fault Tolerance

The capability to continue functioning after a hardware or software failure. An example of fault tolerance with hard drives is RAID configurations.

Hard Drive

A sealed data storage medium on which information is stored. Also called a hard disk.

Virtual Memory

A method of simulating extra memory by using the hard disk space as if it were RAM.

Motherboard RAM

Refers to the Random Access Memory slots situated on the motherboard where memory modules are inserted to provide the system's working memory.

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