MAT 540 Quiz 1

Topics: Normal distribution, Probability theory, Costs Pages: 4 (741 words) Published: January 29, 2014
Question 1
.
 Parameters are known, constant values that are usually coefficients of variables in equations.


Answer
True 
False 

 2 points =T
Question 2
.
 In general, an increase in price increases the break even point if all costs are held constant. . 


Answer
True 
False 


2 points =F
Question 3
.
 Fixed cost is the difference between total cost and total variable cost. . 


Answer
True 
False 


2 points =T
Question 4
.
 Probabilistic techniques assume that no uncertainty exists in model parameters. . 


Answer
True 
False 


2 points =F
Question 5
.
 P(A | B) is the probability of event A, if we already know that event B has occurred. . 


Answer
True 
False 


2 points =T
Question 6
.
 A binomial probability distribution indicates the probability of r successes in n trials. . 


Answer
True 
False 


2 points =T
Question 7
.
 A continuous random variable may assume only integer values within a given interval.


Answer
True 
False 

 2 points =F
Question 8
.
 The purpose of break-even analysis is to determine the number of units of a product to sell that will


Answer ...appeal to the consumer
...result in a profit
...result in a loss
...result in zero profit
.
2 points = result in zero profit
Question 9
.
 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 .

2 points =175
Question 10
.
 If the price increases but fixed and variable costs do not change, the break even point


Answer ...decreases
...increases
...remains the same
...may increase or decrease, depending on sales
.
2 points =decreases
Question 11
.
 The indicator that results in total revenues being equal to total...
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