MAT 540 Quiz 1

Question 1
2 out of 2 points

In general, an increase in price increases the break even point if all costs are held constant. Answer

Selected Answer: False
Correct Answer: False

Question 2
2 out of 2 points

If variable costs increase, but price and fixed costs are held constant, the break even point will decrease. Answer

Selected Answer: False
Correct Answer: False

Question 3
2 out of 2 points

Parameters are known, constant values that are usually coefficients of variables in equations.
Answer

Selected Answer: True
Correct Answer: True

Question 4
2 out of 2 points

Probabilistic techniques assume that no uncertainty exists in model parameters. Answer

Selected Answer: False
Correct Answer: False

Question 5
2 out of 2 points

The events in an experiment are mutually exclusive if only one can occur at a time.
Answer

Selected Answer: True
Correct Answer: True

Question 6
2 out of 2 points

If events A and B are independent, then P(A|B) = P(B|A). Answer

Selected Answer: False
Correct Answer: False

Question 7
2 out of 2 points

A continuous random variable may assume only integer values within a given interval.
Answer

Selected Answer: False
Correct Answer: False

Question 8
2 out of 2 points

The indicator that results in total revenues being equal to total cost is called the
Answer

Selected Answer: break-even point
Correct Answer: break-even point

Question 9
2 out of 2 points

A university is planning a seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. If we know that 20 people will attend, what price should be charged per person to break even?
Answer

Selected