You Are Considering Testing a New Drug That Is Supposed

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You are considering testing a new drug that is supposed to facilitate learning in mentally retarded children. Because there is relatively little known about the drug, you plan to use a nondirectional alternative hypothesis. Since your resources are limited, you can test only 15 subjects. The subjects will be run in a repeated measures design and the data will be analyzed with the sign test, using

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Definitions:

Safety Stocks

Extra inventory kept to prevent stockouts and ensure adequate supply in the face of demand or supply variability.

Restocking Costs

Expenses associated with replenishing inventory, including purchasing, shipping, and handling costs.

Collection Policy

The set of guidelines a company uses to monitor and manage the collection of accounts receivable or owed debts.

Receivables Policy

A set of guidelines a company follows to manage its accounts receivable, including credit terms, collection methods, and credit limits.