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

question 106

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

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Definitions:

Donations

Voluntary transfers of assets, including cash, goods, or services to another party without directly receiving something of equal value.

Endowment Contribution

A donation made to an organization with the stipulation that the funds are to be invested and the principal remained intact.

Restricted Fund Method

An accounting principle that mandates funds designated for a specific purpose by a donor must be tracked and reported separately from general funds.

Deferred Revenue

Revenue received by a company for goods or services to be delivered in the future, recognized as a liability until the service or product is provided.