Parameters are known, constant values that are
usually coefficients of variables in equations.
If variable costs increase, but price and fixed
costs are held constant, the break even point will decrease.
Probabilistic techniques assume that no uncertainty
exists in model parameters.
In general, an increase in price increases the break
even point if all costs are held constant.
A continuous random variable may assume only integer
values within a given interval.
A binomial probability distribution indicates the
probability of r successes in n trials.
If events A and B are independent, then P(A|B) =
A model is a functional relationship that includes:
all of the above
The purpose of break-even analysis is to determine
the number of units of a product to sell that will
appeal to the consumer
result in a profit
result in a loss
result in zero profit
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?
The indicator that results in total revenues being
equal to total cost is called the
In a binomial distribution, for each of n trials,
time between trials is constant
always has the same probability of occurring
result of the first trial influence the next trial
trials are continuous
The area under the normal curve represents
probability, and the total area under the curve sums to
None of the above
The expected value of the standard normal
distribution is equal to
None of the above
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.
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
The variance of the standard normal distribution is
equal to __________.
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.
(M) Female (F)
Administrative (AD) 110 10
staff (SS) 30 50
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?
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.