MAT 540-Week 2 Quiz

QUESTION 1

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

 True

 False

2 points   

QUESTION 2

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

 
 
 
 
 

		variables
		parameters
		equations
		all of the above

		appeal to the consumer
		result in a profit
		result in a loss
		result in zero profit

		166.67
		200
		250
		500

		marginal cost
		marginal volume
		break-even point
		profit mix

		time between trials is constant
		always has the same probability of occurring
		result of the first trial influence the next trial
		trials are continuous

		0
		1
		2
		None of the above

		0
		1
		2
		None of the above

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.

 

 
                                     Male (M) Female (F) 
Job 
Administrative (AD)       110             10
Salaried staff (SS)             30             50
Hourly staff (HS)              60             40
 
 If an employee is selected at random, what is the probability that the employee is female or works as a member of the administration?

 True

 False

2 points   

QUESTION 3

Probabilistic techniques assume that no uncertainty exists in model parameters. 

 True

 False

2 points   

QUESTION 4

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

 True

 False

2 points   

QUESTION 5

A continuous random variable may assume only integer values within a given interval.

 True

 False

2 points   

QUESTION 6

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

 True

 False

2 points   

QUESTION 7

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

 True

 False

2 points   

QUESTION 8

A model is a functional relationship that includes:

2 points   

QUESTION 9

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

2 points   

QUESTION 10

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?

2 points   

QUESTION 11

The indicator that results in total revenues being equal to total cost is called the

2 points   

QUESTION 12

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

2 points   

QUESTION 13

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

2 points   

QUESTION 14

The expected value of the standard normal distribution is equal to

2 points   

QUESTION 15

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.

2 points   

QUESTION 16

A production run of toothpaste requires a fixed cost of $100,000. The variable cost per unit is $3.00. If 50,000 units of toothpaste will be sold during the next month, what sale price must be chosen in order to break even at the end of the month? Note:  please report the result as a whole number, rounding if necessary and omitting the decimal point.

2 points   

QUESTION 17

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. 

2 points   

QUESTION 18

The variance of the standard normal distribution is equal to __________. 

2 points   

QUESTION 19

Employees of a local company are classified according to gender and job type. The following table summarizes the number of people in each job category. 

2 points   

QUESTION 20

An inspector correctly identifies defective products 90% of the time. For the next 10 products, what is the probability that he makes fewer than 2 incorrect inspections?Note: Please report your answer with two places to the right of the decimal, rounding if appropriate. 

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