MAT 540 Quiz 1

Question 1

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

Answer

 True

 False

Question 2

Probabilistic techniques assume that no uncertainty exists in model parameters.

 Answer

 True

 False

Question 3

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

 Answer

 True

 False

Question 4

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

Answer

 True

 False

Question 5

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

Answer

 True

 False

Question 6

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

Answer

 True

 False

Question 7

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

Answer

 True

 False

Question 8

A model is a functional relationship that includes:

Answer

variables

parameters

equations

all of the above

Question 9

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

100

120

150

175

Question 10

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

Answer

appeal to the consumer

result in a profit

result in a loss

result in zero profit

Question 11

If fixed costs increase, but variable cost and price remain the same, the break even point

Answer

decreases

increases

remains the same

may increase or decrease depending on sales

Question 12

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

Answer

0

1

2

None of the above

Question 13

The expected value of the standard normal distribution is equal to

Answer

0

1

2

None of the above

Question 14

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

Answer

time between trials is constant

always has the same probability of occurring

result of the first trial influence the next trial

trials are continuous

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

Question 16

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

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

Question 18

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.

                                     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?

Answer

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

Question 20

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

Answer