# Mat 540 Quiz 1

2 out of 2 points

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| 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|

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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

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 4

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 5

2 out of 2 points

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| P(A | B) is the probability of event A, if we already know that event B has occurred. Answer | | | |

| Selected Answer: | True|

Correct Answer: | True|

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Question 6

2 out of 2 points

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| A continuous random variable may assume only integer values within a given interval.Answer | | | | | Selected Answer: | False|

Correct Answer: | False|

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Question 7

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 8

2 out of 2 points

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| 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 Answer:| 175|

Correct Answer:| 175|

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Question 9

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 10

2 out of 2 points

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| The purpose of break-even analysis is to determine the number of units of a product to sell that willAnswer | | | | | Selected Answer:| result in zero profit|

Correct Answer:| result in zero profit|

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Question 11

2 out of 2 points

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| A bed and breakfast breaks even every month if they book 30 rooms over the course of a month. Their fixed cost is $4200 per month and the revenue they receive from each booked room is $180. What their variable cost per occupied room?Answer | | | | | Selected Answer:| $40|

Correct Answer:| $40|

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Question 12

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 13

0 out of 2 points

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| The expected value of the standard normal distribution is equal toAnswer | | | | | Selected Answer:| 2|

Correct Answer:| 0|

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Question 14

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 15

2 out of 2 points

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| Administrators at a university will charge students $158 to attend a seminar. It costs $2160 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $50 per student for the administrators to provide the course materials. How many students would have to...

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