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

question 80

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%) by randomly assigning five customers to each sales discount rate.An analysis of Cindy's data produced the following ANOVA table. $$\begin{array} { | r | r | r | r | r | } \hline \text { Source of Variation } & \mathrm { SS } & \mathrm { df } & \mathrm { MS } & \mathrm { F } \\\hline \text { Treatrnent } & 1844.2 & \mathbf { 3 } & 614.7333 & 7.568277 \\\hline \text { Error } & 1299.6 & 16 & 81.225 & \\\hline \text { Total } & 3143.8 & 19 & & \\\hline\end{array}$$ Using $\alpha$ = 0.01, the appropriate decision 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=\(\mu\)₅
• D)do not reject the null hypothesis \(\mu\)₁ \(\neq\) \(\mu\)₂\(\neq\)\(\mu\)₃ \(\neq\)\(\mu\)₄ \(\neq\) \(\mu\)₅
• E)do nothing

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Definitions:

Aggregate Supply Curve

Graphical representation showing the total quantity of goods and services that producers in an economy are willing and able to supply at different price levels.

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy compared to a base year.

Aggregate Supply Curve

A diagram that exhibits the comprehensive volume of goods and services that economic producers are ready and capable of supplying at assorted price levels.

Aggregate Demand Curve

A graph representing the total demand for goods and services within an economy at various price levels.