mat 540 quiz

Pages: 10 (825 words) Published: February 8, 2014
﻿Question 1

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

True
True

Question 2

In general, an increase in price increases the break even point if all costs are held constant.

False
False

Question 3

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

True
True

Question 4

If variable costs increase, but price and fixed costs are held constant, the break even point will decrease.

False
False

Question 5

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

False
False

Question 6

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

True
True

Question 7

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

True
True

Question 8

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

result in zero profit

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

250

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

\$40

\$40

Question 11

A model is a functional relationship that includes:

all of the above

all of the above

Question 12

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

0

0

Question 13

The area under the normal curve represents probability, and the total area under the curve sums to Answer

1

1

Question 14

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

always has the same probability of occurring

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

\$2500

Evaluation Method
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

\$175

Evaluation Method
Case...