MAT 540 Quiz 1

Topics: Normal distribution, Costs, Variable cost Pages: 7 (887 words) Published: February 9, 2014
Question 1
2 out of 2 points

Probabilistic techniques assume that no uncertainty exists in model parameters.
Answer
Selected Answer: False
Correct Answer: False

Question 2
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 3
0 out of 2 points

Fixed cost is the difference between total cost and total variable cost.
Answer
Selected Answer: False
Correct Answer: True

Question 4
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 5
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 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

The events in an experiment are mutually exclusive if only one can occur at a time. Answer
Selected Answer: True
Correct Answer: True

Question 8
2 out of 2 points

If fixed costs increase, but variable cost and price remain the same, the break even point Answer
Selected Answer:
increases
Correct Answer:
increases

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

EKA manufacturing company produces Part # 2206 for the aerospace industry. Each unit of part # 2206 is sold for $15. The unit production cost of part # 2206 is $3. The fixed monthly cost of operating the production facility is $3000. How many units of part # 2206 have to be sold in a month to break-even? Answer

Selected Answer:
250
Correct Answer:
250

Question 11
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 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

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 14
0 out of 2 points

The expected value of the standard normal distribution is equal to Answer
Selected Answer:
1
Correct Answer:
0

Question 15
2 out of 2 points

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 register for the seminar for the university to break even? Note: please report the result as a whole number, omitting the decimal point. Answer

Selected Answer: 20
Correct Answer:
Evaluation MethodCorrect AnswerCase Sensitivity
Exact Match20

Question 16
2 out of 2 points

Administrators at a university are...
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