Use the Following Information to Answer the Question

question 35

Multiple Choice

Use the following information to answer the question. Researchers want to test whether the color of a vehicle ticketed for speeding has an effect on the amount of the ticket. Four vehicle colors were used for the study-- red, white, black, and silver. Thirty vehicles were randomly assigned to each group. Use the output below to answer the question.

-Choose the correct conclusion for the hypothesis that vehicle color affects the amount of a speeding ticket. Assume all ANOVA test conditions have been satisfied.

• A)Reject H0. The vehicle color has no effect on the amount of the speeding ticket.
• B)Fail to reject H0. The vehicle color has an effect on the amount of the speeding ticket.
• C)Fail to reject H0. The vehicle color has no effect on the amount of the speeding ticket.
• D)Reject H0. The vehicle color has an effect on the amount of the speeding ticket.

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Definitions:

Credit Sales

Transactions in which goods or services are provided to a customer with an agreement to pay later.

Bad Debt Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect and has written off.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and record bad debts expense.

Percent of Sales Method

A financial forecasting technique that estimates certain balance sheet and income statement items as a fixed percentage of projected sales.