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

question 39

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

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

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Definitions:

Lack Of Effort

A situation where an individual shows minimal or no initiative or willingness to complete tasks.

Self-Monitors

Individuals who are highly aware of their own behavior and how it affects others, often adjusting their actions to fit social contexts.

Appropriate

Suitable or proper in a specific context or situation, meeting the standards or requirements that are expected.

Behavior

The way in which one acts or conducts oneself, especially towards others.