Cindy Smith, VP of Finance at Digital Components, Inc $\alpha$ = 001, the Appropriate Decision Is ___

question 68

Multiple Choice

Cindy Smith, VP of Finance at Digital Components, Inc.(DCI) , theorizes that the discount level 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: 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
• 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:

Deadweight Loss

A decrease in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium state.

Tax

Mandatory charges imposed by governments on individuals or entities to fund public services and goods.

Deadweight Loss

An economic inefficiency resulting from a market not reaching equilibrium, where potential gains from trade are not fully realized.

Demand

It represents the quantity of a good or service that consumers are willing and able to purchase at various prices.