MAT 540 Quiz 1

Topics: Normal distribution, Costs, Variable cost 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.   
Answer

Selected Answer:
 False
Correct Answer:
 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.   
Answer

Selected Answer:
 False
Correct Answer:
 False

Question 3
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 4
2 out of 2 points

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

Selected Answer:
 False
Correct Answer:
 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

Selected Answer:
 True
Correct Answer:
 True

Question 6
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 7
2 out of 2 points

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

Selected Answer:
 False
Correct Answer:
 False

Question 8
2 out of 2 points

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

Selected Answer:
  
break-even point
Correct Answer:
  
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

Selected Answer:
  
175
Correct Answer:
  
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

Selected Answer:
  
$40
Correct Answer:
  
$40

Question 11
2 out of 2 points

A model is a functional relationship that includes:
Answer

Selected Answer:
  
all of the above
Correct Answer:
  
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

Selected Answer:
  
1
Correct Answer:
  
1

Question 13
2 out of 2 points

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

Selected Answer:
  
0
Correct Answer:
  
0

Question 14
2 out of 2 points

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

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:

Evaluation Method
Correct Answer
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...
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