Cindy Ho, VP of Finance at Discrete Components, Inc $\mu$ ₁

question 90

Multiple Choice

Cindy Ho, VP of Finance at Discrete Components, Inc.(DCI) , theorizes that the discount rate 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.Cindy's null hypothesis is ________.

• A)\(\mu\) ₁\(\neq\)\(\mu\) ₂ \(\neq\) \(\mu\) ₃ \(\neq\)\(\mu\) ₄
• B)\(\mu\) ₁ \(\ge\) \(\mu\) ₂ \(\ge\)\(\mu\) ₃ \(\ge\) \(\mu\) ₄
• C)\(\mu\)₁= \(\mu\)₂=\(\mu\)3=\(\mu\)₄
• D)\(\mu\) ₁ \(\le\)\(\mu\) ₂ \(\le\)\(\mu\) ₃ \(\le\) \(\mu\) ₄
• E)\(\mu\) ₁ \(\le\) \(\mu\) ₂ ≥ \(\mu\) ₃ \(\le\)\(\mu\) ₄

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Definitions:

Investment Projects

Initiatives undertaken by businesses or individuals involving the allocation of resources with the expectation of future returns.

Cash Outflows

Money spent or costs incurred by a business or individual, resulting in a decrease in cash reserves.

Straight-Line Depreciation

A manner for spreading out the cost of a tangible asset across its useful life in regular yearly installments.

Income Taxes

Income taxes are taxes imposed by governments on the income generated by businesses and individuals within their jurisdiction.