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

question 65

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= \(\mu\) ₅
• D)do not reject the null hypothesis \(\mu\) ₁ \(\neq\)\(\mu\) ₂ \(\neq\) \(\mu\) ₃\(\neq\) \(\mu\) ₄\(\neq\) \(\mu\)₅
• E)do nothing

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Definitions:

Contingency Planning

Taking into account the managerial options that are implicit in a project.

Abandonment

In business, this refers to the decision to stop developing, producing, or pursuing an asset, project, or product line, often due to it being unprofitable.

Average Total Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of product.