MAT 540 Strayer Spring 2013 Quiz 1 Anwsers

Question 1
2 out of 2 points
In general, an increase in price increases the break even point if all costs are held constant.
Answer

Selected Answer:

False

Correct Answer:

False

Question 2
2 out of 2 points
Probabilistic techniques assume that no uncertainty exists in model parameters.
Answer

Selected Answer:

False

Correct Answer:

False

Question 3
2 out of 2 points
Fixed cost is the difference between total cost and total variable cost.
Answer

Selected Answer:

True

Correct Answer:

True

Question 4
2 out of 2 points
Parameters are known, constant values that are usually coefficients of variables in equations.
Answer

Selected Answer:

True

Correct Answer:

True

Question 5
2 out of 2 points
If events A and B are independent, then P(A|B) = P(B|A).

Answer

Selected Answer:

False

Correct Answer:

False

Question 6
2 out of 2 points
The events in an experiment are mutually exclusive if only one can occur at a time.
Answer

Selected Answer:

True

Correct Answer:

True

Question 7
2 out of 2 points

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

Selected Answer:

True

Correct Answer:

True

Question 8
2 out of 2 points
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
Selected Answer:
$40
Correct Answer:
$40

Question 9
2 out of 2 points
If fixed costs increase, but variable cost and price remain the same, the break even point
Answer
Selected Answer:
increases

Correct Answer:
increases

Question 10
2 out of 2 points
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
Selected Answer:
250
Correct Answer:
250

Question 11
2 out of 2 points
A model is a functional relationship that includes:
Answer
Selected Answer:
all of the above
Correct Answer:
all of the above

Question 12
2 out of 2 points
In a binomial distribution, for each of n trials, the event
Answer
Selected Answer:
always has the same probability of occurring
Correct Answer:
always has the same probability of occurring

Question 13
2 out of 2 points
The expected value of the standard normal distribution is equal to
Answer

Selected Answer:
0
Correct Answer:
0

Question 14
2 out of 2 points
The area under the normal curve represents probability, and the total area under the curve sums to
Answer
Selected Answer:
1
Correct Answer:
1

Question 15
2 out of 2 points
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
Selected Answer:

2500 units

Correct Answer:
Evaluation Method

Correct Answer

Exact Match

2500

Exact Match

2,500

Case Sensitivity

Question 16
2 out of 2 points
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
Selected Answer:

20

Correct Answer:
Evaluation Method
Exact Match

Correct Answer
20

Case Sensitivity

Question 17
2 out of 2 points
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
Selected Answer:

175

Correct Answer:
Evaluation Method

Correct Answer

Exact Match

$175

Exact Match

175

Case Sensitivity

Question 18
2 out of 2 points
The variance of the standard normal distribution is equal to __________.
Answer
Selected Answer:

Correct Answer:
Evaluation Method

Correct Answer
1

Exact Match

Case Sensitivity

Question 19
2 out of 2 points
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.
xi
p(xi)

0
.10

1
.15

2
.18

3
.20

4
.20

5
.10

6
.07

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.
Answer
Selected Answer:
Correct Answer:

2.83

Evaluation Method

Correct Answer

Exact Match

2.83

Exact Match

2.82

Exact Match

2.84

Case Sensitivity

Question 20
2 out of 2 points

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
Selected Answer:

56

Correct Answer:
Evaluation Method
Exact Match

Tuesday, April 30, 2013 1:46:28 AM EDT

Correct Answer
56

Case Sensitivity