# MAT 540 Quiz 1

Pages: 19 (1771 words) Published: December 8, 2013
﻿Question 1
2 out of 2 points

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

False
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.

False
False

Question 3
2 out of 2 points

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

True
True

Question 4
2 out of 2 points

Probabilistic techniques assume that no uncertainty exists in model parameters.

False
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

True
True

Question 6
2 out of 2 points

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

False
False

Question 7
2 out of 2 points

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

False
False

Question 8
2 out of 2 points

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

break-even point

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

175

175

Question 10
2 out of 2 points

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

\$40

\$40

Question 11
2 out of 2 points

A model is a functional relationship that includes:

all of the above

all of the above

Question 12
2 out of 2 points

The area under the normal curve represents probability, and the total area under the curve sums to Answer

1

1

Question 13
2 out of 2 points

The expected value of the standard normal distribution is equal to Answer

0

0

Question 14
2 out of 2 points

In a binomial distribution, for each of n trials, the event

always has the same probability of occurring

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

2500

Evaluation Method
Case Sensitivity
Exact Match
2500

Exact Match
2,500

Question 16
2 out of 2 points

Administrators at a university are planning to offer a summer seminar. The costs of reserving a room, hiring an instructor, and bringing in the equipment amount to \$3000.  Suppose that 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...