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.Cindy's null hypothesis is ______.
A)$\mu$ 1 = $\mu$ 2 = $\mu$ 3 =$\mu$ 4 = $\mu$ 5
B)$\mu$ 1 $\neq$ $\mu$ 2 $\neq$ $\mu$ 3 $\neq$ $\mu$ 4 $\neq$ $\mu$ 5
C)$\mu$ 1 $\neq$ $\mu$ 2 $\neq$ $\mu$ 3 $\neq$ $\mu$ 4
D)$\mu$ 1 $\neq$ $\mu$ 2 = $\mu$ 3 =$\mu$ 4
E)$\mu$ 1 = $\mu$ 2 = $\mu$ 3 =$\mu$ 4

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 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 null hypothesis is ______.
A)$\mu$ 1 = $\mu$  2 = $\mu$ 3 =$\mu$ 4 = $\mu$  5 
B)$\mu$ 1 $\neq$ $\mu$  2 $\neq$ $\mu$ 3 $\neq$ $\mu$ 4 $\neq$ $\mu$  5 
C)$\mu$ 1 $\neq$ $\mu$  2 $\neq$ $\mu$ 3 $\neq$ $\mu$ 4 
D)$\mu$ 1 $\neq$ $\mu$  2 = $\mu$ 3 =$\mu$ 4
E)$\mu$ 1 = $\mu$  2 = $\mu$ 3 =$\mu$ 4

Quizplus · Accepted Answer

The null hypothesis typically states that there is no effect or no difference. In this context, it means that the average collection period is the same across all discount levels.

Cindy Ho,VP of Finance at Discrete Components,Inc μ\muμ 1 = μ\muμ 2 =

Cindy Ho,VP of Finance at Discrete Components,Inc $\mu$ 1 = $\mu$ 2 =