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%).Cindy wants to control for the size of the customer but not to test for it as the main variable, so she classified DCI's credit customers into three categories by total assets (small, medium, and large).Then, she randomly assigned four customers from each category to a sales discount rate.Cindy's experimental design is a ________.
A)normalized block design
B)completely randomized design
C)factorial design
D)randomized block design
E)partially randomized design

Question

Quizplus · Accepted Answer

Cindy's experimental design is a randomized block design because she is controlling for the size of the customer (block variable) by categorizing them into small, medium, and large, and then randomly assigning the sales discount rates within each block.