Cindy Ho,VP of Finance at Discrete Components,Inc

question 59

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%) . Cindy wants to control for the size of the customer but not to test for it as the main variable of interest so 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. In Cindy's experiment "total asset size of credit customer" is ________.

• A) a surrogate variable
• B) the dependent variable
• C) a blocking variable
• D) a treatment variable
• E) a constant

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Definitions:

Crowdsourcing

The method of acquiring necessary services, ideas, or content by requesting contributions from a wide audience, particularly from an online community, as opposed to relying on traditional employees or suppliers.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired result.

Contemporary Approaches

Modern methods or techniques being used in a particular field or discipline.

Decision Making

Deciding on a particular action from a range of possible actions by using cognitive functions.