Strayer MAT540 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

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

Answer

True

False

Question 6

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

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 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

$30

$40

$48

$62

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

166.67

200

250

500

Question 10

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

Answer

Decreases

Increases

remains the same

may increase or decrease, depending on sales

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

100

120

150

175

Question 12

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 13

The expected value of the standard normal distribution is equal to

Answer

0

1

2

None of the above

Question 14

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 15

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 16

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 17

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

Question 18

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 19

An automotive center keeps tracks of customer complaints received each week. The probability distribution for complaints can be represented as a table (shown below). The random variable xi represents the number of complaints, and p(xi) is the probability of receiving xi complaints.

What is the average number of complaints received per week?

Note: Please report your answer with two places to the right of the decimal, rounding if appropriate.

Question 20

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: