Cindy Ho, VP of Finance at Discrete Components, Inc.(DCI), theorizes that the discount rate 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.In Cindy's experiment, "average collection period" is ________.
A)the dependent variable
B)a treatment variable
C)a blocking variable
D)a concomitant variable
E)a constant

Question

Quizplus · Accepted Answer

The "average collection period" is the outcome that Cindy is interested in observing how it changes in response to different sales discount rates. Therefore, it is the dependent variable, as its values depend on the level of the independent variable (the sales discount rates).