MAT 540 Week 2 Quiz

Question 1

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 2

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 3

1.       

Probabilistic techniques assume that no uncertainty exists in model parameters. 
 

Answer

[removed] True

[removed] False

2 points   

Question 4

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 5

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 6

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 7

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 8

1.       

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

2 points   

Question 9

1.       

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

Answer

2 points   

Question 10

1.       

If the price increases but fixed and variable costs do not change, the break even point

Answer

2 points   

Question 11

1.       

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

1.       

The expected value of the standard normal distribution is equal to

Answer

2 points   

Question 13

1.       

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

Answer

2 points   

Question 14

1.       

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

Answer

2 points   

Question 15

1.       

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[removed]

2 points   

Question 16

1.       

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[removed]

2 points   

Question 17

1.       

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[removed]

2 points   

Question 18

1.       

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[removed]

2 points   

Question 19

1.       

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

Answer[removed]

2 points   

Question 20

1.       

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?

Question 1

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 2

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 3

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 4

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 5

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 6

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 7

1.       

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

Answer

[removed] True

[removed] False

2 points   

Question 8

1.       

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

1.       

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 10

1.       

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

Answer

2 points   

Question 11

1.       

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

Answer

2 points   

Question 12

1.       

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

Answer

2 points   

Question 13

1.       

The expected value of the standard normal distribution is equal to

Answer

2 points   

Question 14

1.       

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

Answer

2 points   

Question 15

1.       

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[removed]

2 points   

Question 16

1.       

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[removed]

2 points   

Question 17

1.       

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[removed]

2 points   

Question 18

1.       

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

Answer[removed]

2 points   

Question 19

1.       

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[removed]

2 points   

Question 20

1.       

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[removed]