Cindy Smith, VP of Finance at Digital 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.Cindy's experimental design is a ___.
A)factorial design
B)random block design
C)completely randomized design
D)normalized block design
E)incomplete block design

Question

Quizplus · Accepted Answer

Cindy's experimental design is a completely randomized design because she randomly assigned customers to each sales discount rate. There is no blocking or specific order to the assignment of customers, making it a simple and straightforward design.