mat 540 quiz

Topics: Normal distribution, Costs, Probability theory Pages: 10 (825 words) Published: February 8, 2014
Question 1

Fixed cost is the difference between total cost and total variable cost.   
Answer

Selected Answer:
 True
Correct Answer:
 True

Question 2

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 3

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

Selected Answer:
 True
Correct Answer:
 True

Question 4

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 5

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

Selected Answer:
 False
Correct Answer:
 False

Question 6

A binomial probability distribution indicates the probability of r successes in n trials.   
Answer

Selected Answer:
 True
Correct Answer:
 True

Question 7

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

The purpose of break-even analysis is to determine the number of units of a product to sell that will Answer

Selected Answer:
  
result in zero profit
Correct Answer:
  
result in zero profit

Question 9

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 10

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

A model is a functional relationship that includes:
Answer

Selected Answer:
  
all of the above
Correct Answer:
  
all of the above

Question 12

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

Selected Answer:
  
0
Correct Answer:
  
0

Question 13

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 14

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
0 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

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 break even?   Note: please report the result as a whole number, rounding if necessary and omitting the decimal point. Answer

Selected Answer:
  $175
Correct Answer:

Evaluation Method
Correct Answer
Case...
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