MAT 540 Week 2 Quiz
If variable costs increase, but price and fixed costs are held constant, the break even point will decrease.
Parameters are known, constant values that are usually coefficients of variables in equations.
Probabilistic techniques assume that no uncertainty exists in model parameters.
In general, an increase in price increases the break even point if all costs are held constant.
P(A | B) is the probability of event A, if we already know that event B has occurred.
A continuous random variable may assume only integer values within a given interval.
The events in an experiment are mutually exclusive if only one can occur at a time.
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?
The indicator that results in total revenues being equal to total cost is called the
If the price increases but fixed and variable costs do not change, the break even point
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?
The expected value of the standard normal distribution is equal to
In a binomial distribution, for each of n trials, the event
The area under the normal curve represents probability, and the total area under the curve sums to
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.