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:

Benefit Audits

The process of reviewing and verifying the accuracy and compliance of an organization's employee benefits program with relevant laws, policies, and contracts.

Claiming Habits

Patterns or tendencies of individuals or groups in asserting or establishing their rights, entitlements, or possessions, often in legal or business contexts.

Defined Contribution Plan

A type of retirement plan in which the employer, employee, or both make contributions on a regular basis, but the final benefit received by the employee depends on the plan's investment performance.

Length of Service

The duration of time an employee has worked for a particular employer, often affecting their eligibility for certain benefits or recognition.