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.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 variable being measured in the experiment, making it the dependent variable. The sales discount rates are the independent variable, or treatment variable, being manipulated in the experiment. The customers being assigned to each discount rate are the blocking variable to control for any potential confounding variables. There is no concomitant variable mentioned in the scenario, and the average collection period is not a constant.