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Cindy Ho,VP of Finance at Discrete Components,Inc

question 93

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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. In Cindy's experiment "sales discount rate" is ________.


Definitions:

Papillae Projections

Small, nipple-like structures on the surface of an organ, such as the tongue, that often contain taste buds.

Taste Buds

Small sensory organs located on the tongue that allow humans to perceive different tastes.

Digestive

Pertaining to digestion.

Preicteric

Referring to the initial phase of a disease, particularly liver disease, that occurs before the onset of jaundice, where the skin turns yellow.

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