A Firm Changes Its Credit Policy from 2/10, Net 30

question 105

True/False

A firm changes its credit policy from 2/10, net 30, to 3/10, net 30. The change is meant to meet competition, so no increase in sales is expected. Average accounts receivable will probably decline as a result of this change.

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Definitions:

Dependent Means

Refers to comparing the means of two related groups, often used in paired samples testing where subjects are measured twice.

Dependent-Samples T Test

A statistical test used when comparing the means of two related groups to determine if there are statistically significant differences.

Same Group

Refers to a single group of subjects that is used in an experimental study where each subject receives all treatments; also known as a within-subjects design.

Two Conditions

A situation in experiments where participants are subjected to one of two different states or treatments to investigate the effects on a dependent variable.