Cindy Ho,VP of Finance at Discrete Components,Inc $\alpha$ = 005,the Appropriate Decision for Block Effects Is ________

question 103

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. An analysis of Cindy's data yielded the following ANOVA table.
Using $\alpha$ = 0.05,the appropriate decision for block effects is ________.

• A) do not reject the null hypothesis \(\mu\)₁\(\neq\)\(\mu\)₂ \(\neq\)\(\mu\)₃
• B) do not reject the null hypothesis \(\mu\)₁=\(\mu\)₂ = \(\mu\)₃
• C) reject the null hypothesis \(\mu\)₁ \(\ge\)\(\mu\)₂ \(\ge\) \(\mu\)₃
• D) reject the null hypothesis \(\mu\)₁ \(\le\)\(\mu\)₂ \(\le\) \(\mu\)₃
• E) do nothing

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Definitions:

Dollar Today

The current value of the US dollar against a basket of foreign currencies, affecting import and export prices.

Equal Cash Flow

Recurrent inflow or outflow of cash that is the same in amount for each period.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement planning.

Sensitivity Analysis

A technique used in financial modeling to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.