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

question 49

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. $$\begin{array} { | r | r | r | r | r | } \hline \text { Source of Variation } & \mathbf { S S } & \mathrm { df } & \mathrm { MS } & \text { F } \\\hline \text { Treatrnent } & 5.35 & \mathbf { 3 } & 1.783333 & \\\hline \text { Error } & 177.2 & 16 & 11.075 & \\\hline \text { Total } & 182.55 & 19 & & \\\hline\end{array}$$ Using $\alpha$ = 0.01, the observed F value is _________.

• A)6.2102
• B)0.1610
• C)0.1875
• D)5.3333
• E)4.9873

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Definitions:

Citizenry

The total body of citizens of a particular place; denoting the inhabitants or constituents of a nation or area.

NLRB v. Jones & Laughlin Steel Corp.

A landmark United States Supreme Court decision that upheld the constitutionality of the National Labor Relations Act, allowing for stronger federal protection of workers' rights.

Commerce Clause

Clause 3 of Article I, Section 8, of the U.S. Constitution, which authorizes Congress to “regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.”

Federal Funds

Reserve balances that commercial banks hold at the Federal Reserve, often lent overnight to meet reserve requirements.