20 QUESTIONS .

Question 1 

Probabilistic techniques assume that no uncertainty exists in model parameters. 

Answer 

True 

False 

2 points 

Question 2 

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

Answer 

True 

False 

2 points 

Question 3 

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

Answer 

True 

False 

2 points 

Question 4 

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

Answer 

True 

False 

2 points 

Question 5 

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

Answer 

True 

False 

2 points 

Question 6 

P(A | B) is the probability of event A, if we already know that event B has occurred.

Answer 

True 

False 

2 points 

Question 7 

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

Answer 

True 

False 

2 points 

Question 8 

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

Answer 

2 points 

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 

2 points 

Question 10 

A model is a functional relationship that includes:

Answer 

2 points 

Question 11

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 

2 points 

Question 12 

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

Answer 

2 points 

Question 13 

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

Answer 

2 points 

Question 14 

The expected value of the standard normal distribution is equal to

Answer 

2 points 

Question 15 

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.

Answer 

2 points 

Question 16 

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 

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. 

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 

2 points 

Question 18 

Wei is considering pursuing an MS in Information Systems degree. She has applied to two different universities. The acceptance rate for applicants with similar qualifications is 20% for University X and 45% for University Y. What is the probability that Wei will be accepted by at least one of the two universities? {Express your answer as a percent. Round (if necessary) to the nearest whole percent and omit the decimal. For instance, 20.1% would be written as 20} 

Answer 

2 points 

Question 19 

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.

Answer 

2 points 

Question 20

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

Answer