Cindy Ho,VP of Finance at Discrete Components,Inc $\mu$ 1 = $\mu$ 2 =

question 18

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.Cindy's null hypothesis is ________.

• A) \(\mu\) 1 = \(\mu\) 2 = \(\mu\) 3 =\(\mu\) 4
• B) \(\mu\) 1 \(\ge\) \(\mu\) 2 \(\ge\) \(\mu\) 3 \(\ge\) \(\mu\) 4 .
• C) \(\mu\) 1 \(\neq\) \(\mu\) 2 \(\neq\) \(\mu\) 3 \(\neq\) \(\mu\) 4
• D) \(\mu\) 1 \(\le\)\(\mu\) 2 \(\le\) \(\mu\) 3 \(\le\)\(\mu\) 4
• E) \(\mu\) 1 \(\le\) \(\mu\) 2 \(\ge\) \(\mu\) 3 \(\le\)\(\mu\) 4.

---

Definitions:

Shortage/Surplus

An economic condition where the quantity demanded is greater than (shortage) or less than (surplus) the quantity supplied at the market price.

Demand Equation

A mathematical representation of the relationship between the quantity of a good demanded and its price.

Supply Equation

A mathematical formula that represents the relationship between the quantity of a good supplied and its price.

Price Ceiling

A maximum price set by the government for particular goods and services that cannot legally be charged above to prevent prices from being too high.