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%).First, 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.In Cindy's experiment "sales discount rate" is ________.
A)a surrogate variable
B)the dependent variable
C)a blocking variable
D)a treatment variable
E)a constant

Question

Quizplus · Accepted Answer

In Cindy's experiment, the "sales discount rate" is the variable being manipulated to observe its effect on the average collection period, making it a treatment variable.