Your CEO Has Just Read a Book on Criticisms of the NHST

question 15

Multiple Choice

Your CEO has just read a book on criticisms of the NHST and worries that all company data analysis is now flawed and will lead to huge financial losses. How might you reassure her?

• A) NHST does have its flaws but if we incorporate an examination of effect sizes into our analysis, we should be able to trust our research outputs.
• B) NHST does have its flaws but everyone else uses it, therefore we should.
• C) NHST is a flawless approach and the book was probably written by a disciple of the Bayesian approach.
• D) NHST is a flawless approach and we need to invest in more data analysts who are trained in it.

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Definitions:

Accounts Receivable

Represents the money due to a company for goods or services that have been delivered or used but not yet paid for by customers.

DSO

DSO (Days Sales Outstanding) is a financial metric that calculates the average number of days it takes for a company to collect payments after a sale has been made.

Aging Schedule

An accounting table that shows the breakdown of receivables by age, helping manage and collect debts.

Sales Fluctuate

Variations or changes in sales volume over a specified period due to factors such as market demand, seasonality, or economic conditions.