By Adding the Number of Days That Inventory Is Held

question 6

Short Answer

By adding the number of days that inventory is held to the number of days that accounts receivable is outstanding an analyst can calculate the number of days of _____________________________________________ the firm requires.

---

Definitions:

Sampling Distribution

The distribution of a statistic (like the mean or proportion) obtained from a large number of samples drawn from the same population.

Sampled Population

The population from which the sample is taken.

Targeted Population

A group of individuals sharing one or several characteristics that a study is designed to analyze.

Standard Error

A statistical measure that estimates the accuracy with which a sample distribution represents a population by using the standard deviation.