Mat540 Quiz 1

Topics: Normal distribution, Probability theory, Costs Pages: 6 (862 words) Published: July 22, 2012
 Question 1
2 out of 2 points
| |
| Probabilistic techniques assume that no uncertainty exists in model parameters.  Answer | | | |
| Selected Answer: |  False|
Correct Answer: |  False|
| | | |
 Question 2
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 3
0 out of 2 points
| |
| Fixed cost is the difference between total cost and total variable cost.  Answer | | | |
| Selected Answer: |  False|
Correct Answer: |  True|
| | | |
 Question 4
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 5
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 6
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 7
2 out of 2 points
| |
| A binomial probability distribution indicates the probability of r successes in n trials.  Answer | | | |
| Selected Answer: |  True|
Correct Answer: |  True|
| | | |
 Question 8
2 out of 2 points
| |
| If fixed costs increase, but variable cost and price remain the same, the break even pointAnswer | | | | | Selected Answer:|    increases|
Correct Answer:|    increases|
| | | |
 Question 9
2 out of 2 points
| |
| If the price increases but fixed and variable costs do not change, the break even pointAnswer | | | | | Selected Answer:|    decreases|
Correct Answer:|    decreases|
| | | |
 Question 10
2 out of 2 points
| |
| 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|
| | | |
 Question 11
0 out of 2 points
| |
| 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|

| | | |
 Question 12
2 out of 2 points
| |
| The area under the normal curve represents probability, and the total area under the curve sums toAnswer | | | | | Selected Answer:|    1|
Correct Answer:|    1|
| | | |
 Question 13
0 out of 2 points
| |
| The expected value of the standard normal distribution is equal toAnswer | | | | | Selected Answer:|    1|
Correct Answer:|    0|
| | | |
 Question 14
2 out of 2 points
| |
| 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|

| | | |
 Question 15
2 out of 2 points
| |
| 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|
| | | |
 Question 16
2 out of 2 points...
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