# MAT 540 Quiz 1

**Topics:**Normal distribution, Probability theory, Costs

**Pages:**4 (741 words)

**Published:**January 29, 2014

. 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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