MAT 540: Quantitative Methods WEEK 2 discussion, quiz and homework

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

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

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

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

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

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

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

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

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

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?

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?

The expected value of the standard normal distribution is equal to

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

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

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.

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.

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.

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?

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

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.