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.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$₁ =$\mu$₂ =$\mu$₃ =$\mu$₄ E)$\mu$₁ ≠ $\mu$₂ =$\mu$₃ =$\mu$₄

Question

Quizplus · Accepted Answer

The null hypothesis in an experiment typically states that there is no effect or no difference. In this context, Cindy's null hypothesis would assert that the average collection period on credit sales is the same across all four sales discount rates (0%, 2%, 4%, and 6%), indicating that the discount rate does not affect the average collection period.

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

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