A Random Sample of 40 Companies with Assets Over $10

question 44

Multiple Choice

A random sample of 40 companies with assets over $10 million was surveyed and asked to indicate their industry and annual computer technology expense. The ANOVA comparing the average computer technology expense among three industries rejected the null hypothesis. The Mean Square Error (MSE) was 195. The following table summarized the results: Based on the comparison between the mean annual computer technology expense for companies in the education and tax services industries, _________________.

• A)A confidence interval shows that the mean annual computer technology expenses are not significantly different
• B)The ANOVA results show that the mean annual computer technology expenses are significantly different
• C)A confidence interval shows that the mean annual computer technology expenses are significantly different
• D)The ANOVA results show that the mean annual computer technology expenses are not significantly different

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Definitions:

Receivables Balance

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Average Annual Sales

Average annual sales represent the mean revenue a company generates per year over a specified period, commonly used to assess business performance and growth trends.

Credit Policy

Guidelines that a company follows to determine credit limits and terms for customers, which affects how and to whom credit is extended.