Question
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
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%) by randomly assigning five customers to each sales discount rate. An analysis of Cindy's data produced the following ANOVA table.
Source of Variation | SS | df | MS | F |
Treatment | 835.3 | 3 | 278.43 | 3.43 |
Error | 1299.6 | 16 | 81.23 |
|
Total | 2134.9 | 19 |
|
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Based on these results, using a 5% significance level ________
There is insufficient evidence to conclude that credit sales increase depending on the discount levels offered. | ||
There is sufficient evidence to conclude that credit sales increase depending on the discount levels offered. | ||
There is sufficient evidence to conclude that the average collection period on credit sales is not the same for the different discount levels. | ||
There is insufficient evidence to conclude that the average collection period on credit sales is not the same for the different discount levels. |
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