# Mat540 Quiz 1

Pages: 6 (862 words) Published: July 22, 2012
 Question 1
2 out of 2 points
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| Probabilistic techniques assume that no uncertainty exists in model parameters.  Answer | | | |
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 Question 2
2 out of 2 points
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| In general, an increase in price increases the break even point if all costs are held constant.  Answer | | | |
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 Question 3
0 out of 2 points
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| Fixed cost is the difference between total cost and total variable cost.  Answer | | | |
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 Question 4
2 out of 2 points
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| Parameters are known, constant values that are usually coefficients of variables in equations.Answer | | | | | Selected Answer: |  True|
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 Question 5
2 out of 2 points
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| If events A and B are independent, then P(A|B) = P(B|A).  Answer | | | |
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 Question 6
2 out of 2 points
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| The events in an experiment are mutually exclusive if only one can occur at a time.Answer | | | | | Selected Answer: |  True|
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 Question 7
2 out of 2 points
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| A binomial probability distribution indicates the probability of r successes in n trials.  Answer | | | |
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 Question 8
2 out of 2 points
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| If fixed costs increase, but variable cost and price remain the same, the break even pointAnswer | | | | | Selected Answer:|    increases|
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 Question 9
2 out of 2 points
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| If the price increases but fixed and variable costs do not change, the break even pointAnswer | | | | | Selected Answer:|    decreases|
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 Question 10
2 out of 2 points
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| EKA manufacturing company produces Part # 2206 for the aerospace industry. Each unit of part # 2206 is sold for \$15. The unit production cost of part # 2206 is \$3. The fixed monthly cost of operating the production facility is \$3000. How many units of part # 2206 have to be sold in a month to break-even?Answer | | | | | Selected Answer:|    250|

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 Question 11
0 out of 2 points
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| A bed and breakfast even every month if they book 30 rooms over the course of a month.  Their fixed cost is \$6000 per month and the revenue they receive from each booked room is \$180.  What their variable cost per occupied room?Answer | | | | | Selected Answer:|    \$62                        | Correct Answer:|    \$40|

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 Question 12
2 out of 2 points
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| The area under the normal curve represents probability, and the total area under the curve sums toAnswer | | | | | Selected Answer:|    1|
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 Question 13
0 out of 2 points
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| The expected value of the standard normal distribution is equal toAnswer | | | | | Selected Answer:|    1|
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 Question 14
2 out of 2 points
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| In a binomial distribution, for each of n trials, the eventAnswer | | | | | Selected Answer:|    always has the same probability of occurring| Correct Answer:|    always has the same probability of occurring|

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 Question 15
2 out of 2 points
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| A production process requires a fixed cost of \$50,000. The variable cost per unit is \$25 and the revenue per unit is projected to be \$45.  Find the break-even point.Answer | | | | | Selected Answer: |   2500|

2,500|
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 Question 16
2 out of 2 points...