November 2023 Question 1 Probabilistic techniques assume that no uncertainty exists in model parameters
MAT 540 QUIZ 1
Business & Finance
Question 1
Probabilistic techniques assume that no uncertainty exists in model parameters.
Answer
[removed]True
[removed]False
2 points
Question 2
Fixed cost is the difference between total cost and total variable cost.
Answer
[removed]True
[removed]False
2 points
Question 3
Parameters are known, constant values that are usually coefficients of variables in equations.
Answer
[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.
Answer
[removed]True
[removed]False
2 points
Question 5
If events A and B are independent, then P(AB) = P(BA).
Answer
[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.
Answer
[removed]True
[removed]False
2 points
Question 7
A binomial probability distribution indicates the probability of r successes in n trials.
Answer
[removed]True
[removed]False
2 points
Question 8
The purpose of breakeven analysis is to determine the number of units of a product to sell that will
Answer
[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 breakeven?
Answer
[removed] 
166.67 

[removed] 
200 

[removed] 
250 

[removed] 
500 
2 points
Question 10
A model is a functional relationship that includes:
Answer
[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?
Answer
[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
Answer
[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
Answer
[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
Answer
[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.
Answer [removed]
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.
Answer [removed]
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.
Answer [removed]
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}
Answer [removed]
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.
Answer [removed]
2 points
Question 20
The variance of the standard normal distribution is equal to __________.
Answer [removed]