MAT 540 Quiz 1
Question 1
. Parameters are known, constant values that are usually coefficients of variables in equations. Answer True False
2 points =T
Question 2
. In general, an increase in price increases the break even point if all costs are held constant.
. Answer True False
2 points =F
Question 3
. Fixed cost is the difference between total cost and total variable cost.
. Answer True False
2 points =T
Question 4
. Probabilistic techniques assume that no uncertainty exists in model parameters.
. Answer True False
2 points =F
Question 5
. P(A | B) is the probability of event A, if we already know that event B has occurred.
. Answer True False
2 points =T
Question 6
. A binomial probability distribution indicates the probability of r successes in n trials.
. Answer True False
2 points =T
Question 7
. A continuous random variable may assume only integer values within a given interval. Answer True False
2 points =F
Question 8
. The purpose of break-even analysis is to determine the number of units of a product to sell that will Answer
. . . appeal to the consumer
. . . result in a profit
. . . result in a loss
. . . result in zero profit
.
2 points = result in zero profit
Question 9
. 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 =175
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
.
2 points =decreases
Question 11
. The indicator that results in total revenues being equal
. Parameters are known, constant values that are usually coefficients of variables in equations. Answer True False
2 points =T
Question 2
. In general, an increase in price increases the break even point if all costs are held constant.
. Answer True False
2 points =F
Question 3
. Fixed cost is the difference between total cost and total variable cost.
. Answer True False
2 points =T
Question 4
. Probabilistic techniques assume that no uncertainty exists in model parameters.
. Answer True False
2 points =F
Question 5
. P(A | B) is the probability of event A, if we already know that event B has occurred.
. Answer True False
2 points =T
Question 6
. A binomial probability distribution indicates the probability of r successes in n trials.
. Answer True False
2 points =T
Question 7
. A continuous random variable may assume only integer values within a given interval. Answer True False
2 points =F
Question 8
. The purpose of break-even analysis is to determine the number of units of a product to sell that will Answer
. . . appeal to the consumer
. . . result in a profit
. . . result in a loss
. . . result in zero profit
.
2 points = result in zero profit
Question 9
. 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 =175
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
.
2 points =decreases
Question 11
. The indicator that results in total revenues being equal