Photo Equipment Store Earnings
the Quarterly Earnings of a Chain

question 213

Essay

Photo Equipment Store Earnings
The quarterly earnings of a chain of Photo Equipment stores have been recorded for the years 2011-2014.These data (in millions of dollars)are shown in the accompanying table.
$$\begin{array}{l}\text { Year }\\\begin{array} { | c | c c c c | } \hline \text { Quarter } & 2011 & 2012 & 2013 & 2014 \\\hline 1 & 65 & 70 & 73 & 79 \\2 & 80 & 88 & 90 & 95 \\3 & 98 & 103 & 107 & 111 \\4 & 67 & 74 & 76 & 80 \\\hline\end{array}\end{array}$$
-Regression analysis was used to develop the following equation from 60 observations of quarterly data: $\tilde { y } _ { t }$ = 2500 - 3t - 3Q₁ + 2Q₂ + 5Q₃,where $Q _ { i } = \left\{ \begin{array} { l } 1 \text { if quarter } i \quad ( i = 1,2,3 ) \\0 \text { otherwise }\end{array} \right.$ Forecast the next four quarters.

Understand and calculate the accounts payable period.

Evaluate and interpret the cash cycle in different operational changes and conditions.

Understand the concept of normal distribution in the context of IQ scores.

Recognize the impact of the Flynn effect on intelligence testing.

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