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%).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 "average collection period" is ________.
A)a concomitant variable
B)the dependent variable
C)a treatment variable
D)a blocking variable
E)a constant

Question

Quizplus · Accepted Answer

The "average collection period" is the outcome that Cindy is interested in observing as it changes with different levels of the independent variable (sales discount rates). Therefore, it is the dependent variable in this experiment.