# Mat540 Quiz 1

**Topics:**Normal distribution, Probability theory, Costs

**Pages:**6 (862 words)

**Published:**July 22, 2012

2 out of 2 points

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

| Selected Answer: | False|

Correct Answer: | False|

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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 | | | |

| Selected Answer: | False|

Correct Answer: | False|

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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 | | | |

| Selected Answer: | False|

Correct Answer: | True|

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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|

Correct 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 | | | |

| Selected Answer: | False|

Correct Answer: | False|

| | | |

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|

Correct 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 | | | |

| Selected Answer: | True|

Correct Answer: | True|

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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|

Correct 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|

Correct 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|

Correct 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|

Correct 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|

Correct Answer:| 0|

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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|

Correct Answer: | 2500

2,500|

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Question 16

2 out of 2 points...

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