Cindy Ho, VP of Finance at Discrete Components, Inc. (DCI), theorizes that the d

Question

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. An analysis of Cindy's data produced the following ANOVA table.

Using = 0.01, the observed F value is:

A) 0.1875

B) 6.2102

C) 5.3333

D) 4.9873

E) 0.1610

PLEASE EXPLAIN HOW YOU GOT THE ANSWER!

Explanation / Answer

here observed F value =mean squre (treatment)/mean square(error) =(1.783333/11.075)=0.1610

option E is correct

( please revert for any clarificaiton required)

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