# November 2023 Question 1 Probabilistic techniques assume that no uncertainty exists in model parameters

MAT 540 QUIZ 1

Question 1

Probabilistic techniques assume that no uncertainty exists in model parameters.

[removed]True

[removed]False

2 points

Question 2

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

[removed]True

[removed]False

2 points

Question 3

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

[removed]True

[removed]False

2 points

Question 4

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

[removed]True

[removed]False

2 points

Question 5

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

[removed]True

[removed]False

2 points

Question 6

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

[removed]True

[removed]False

2 points

Question 7

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

[removed]True

[removed]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

 [removed] appeal to the consumer [removed] result in a profit [removed] result in a loss [removed] result in zero profit

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?

 [removed] 166.67 [removed] 200 [removed] 250 [removed] 500

2 points

Question 10

A model is a functional relationship that includes:

 [removed] variables [removed] parameters [removed] equations [removed] all of the above

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?

 [removed] 100 [removed] 120 [removed] 150 [removed] 175

2 points

Question 12

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

 [removed] 0 [removed] 1 [removed] 2 [removed] None of the above

2 points

Question 13

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

 [removed] time between trials is constant [removed] always has the same probability of occurring [removed] result of the first trial influence the next trial [removed] trials are continuous

2 points

Question 14

The expected value of the standard normal distribution is equal to

 [removed] 0 [removed] 1 [removed] 2 [removed] None of the above

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.

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.

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.

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}

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.