Cindy Ho,VP of Finance at Discrete Components,Inc $\mu$ ₁ $\neq$ $\mu$

question 44

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%) .First,she classified DCI's credit customers into three categories by total assets (small,medium,and large) .Then,she randomly assigned four customers from each category to a sales discount rate.Cindy's null hypothesis is ___.

• A) \(\mu\) ₁ \(\neq\)\(\mu\) ₂ \(\neq\) \(\mu\) ₃\(\neq\) \(\mu\) ₄
• B)\(\mu\) ₁ \(\le\)\(\mu\) ₂ \(\le\) \(\mu\) ₃\(\le\) \(\mu\) ₄.
• C)\(\mu\) ₁ =\(\mu\) ₂ =\(\mu\) ₃= \(\mu\) ₄
• D)\(\mu\) ₁ \(\le\)\(\mu\) ₂ \(\le\) \(\mu\) ₃\(\le\) \(\mu\) ₄
• E)\(\mu\) ₁ \(\le\)\(\mu\) ₂ \(\ge\) \(\mu\) ₃\(\le\) \(\mu\) ₄ .

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Definitions:

Budget Shortage

A financial situation in which an entity’s expenditures exceed its revenues over a particular period of time, leading to a deficit that must be addressed by borrowing, spending cuts, or tax increases.

Market Wage

The prevailing rate of pay for work or labor, determined by the supply and demand for labor in the job market.

Transitive Preferences

In decision-making, the condition where if an individual prefers option A to option B and option B to option C, then they also prefer option A to option C.

Majority Rule

A decision-making rule in which the preferences of more than half of the members in a group have authority over decisions.