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

question 14

Multiple Choice

Cindy Ho,VP of Finance at Discrete 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:

GAAP

Generally Accepted Accounting Principles, a collection of commonly followed accounting rules and standards for financial reporting.

Accounting and Financial Reporting

The process of recording, summarizing, and reporting the financial transactions of a business to provide an accurate picture of its financial position and performance.

Liability

Anything owed to creditors—the claims of a company’s creditors.

Creditors

Individuals or institutions to whom money is owed by a debtor or borrower.