Cindy Ho,VP of Finance at Discrete Components,Inc $\alpha$ = 001,the Critical F Value Is _________

question 23

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 critical F value is _________.

• A) 5.33
• B) 6.21
• C) 0.16
• D) 5.29
• E) 6.89

---

Definitions:

Average Cost

The total cost divided by the quantity produced, indicating the cost per unit of output.

Competitive Industry

An industry characterized by a large number of firms competing against each other, leading to innovation, varied product choices, and reasonable prices for consumers.

Marginal Cost

The cost associated with producing one more unit of a product, reflecting how production costs change with output levels.

Average Cost

The total cost of production divided by the number of units produced, often used to calculate the cost per unit.