Cindy Ho, VP of Finance at Discrete Components, Inc Using $\alpha$

question 125

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.An analysis of Cindy's data yielded the following ANOVA table. $$\begin{array} { | c | c | c | c | c | } \hline \text { Source of Variation } & \text { SS } & \text { df } & \text { MS } & \text { F } \\\hline \text { Treatrnent } & 64.91667 & 3 & 21.63889 & 8.752809 \\\hline \text { Block } & 10.5 & 2 & 5.25 & 2.123596 \\\hline \text { Erer } & 14.83333 & 6 & 2.472222 & \\\hline \text { Total } & 90.25 & 11 & & \\\hline\end{array}$$ Using $\alpha$ = 0.05, the appropriate decision for treatment effects is ________.

• A)reject the null hypothesis \(\mu\)₁=\(\mu\)₂=\(\mu\)₃₌\(\mu\)₄
• B)reject the null hypothesis \(\mu\) ₁ \(\neq\) \(\mu\) ₂ \(\neq\) \(\mu\) ₃ \(\neq\)\(\mu\) ₄
• C)do not reject the null hypothesis \(\mu\) ₁ = \(\mu\) ₂ = \(\mu\) ₃= \(\mu\) ₄
• D)do not reject the null hypothesis \(\mu\) ₁ \(\neq\) \(\mu\) ₂ \(\neq\)\(\mu\) ₃ \(\neq\) \(\mu\) ₄
• E)do nothing

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Definitions:

Exciting Things

Objects, events, or experiences that arouse enthusiasm, interest, or adrenaline.

Two Factor Theory

A theory that explains emotions and their arousal through a combination of physiological arousal and cognitive interpretation of that arousal.

Arousal

A state characterized by both physical and mental responsiveness or awareness, commonly linked with heightened alertness and an accelerated heartbeat.

Lust

An intense and passionate desire, often used in the context of sexual attraction.