Cindy Ho,VP of Finance at Discrete Components,Inc

question 3

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. Cindy's experimental design is a ________.

• A) normalized block design
• B) completely randomized design
• C) factorial design
• D) random block design
• E) partially randomized design

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Definitions:

Liability

Obligations or debts that an entity owes to others, which must be settled through the transfer of assets or services.

Services Performed

Tasks or work completed, particularly in the context of professional or commercial services.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up over a period.

Accumulated Depreciation

The cumulative total of the depreciation expense allocated for a physical asset from the time it was first utilized.