## Description

**QUESTION 1**

Parameters are known, constant values that are

usually coefficients of variables in equations.

True

False

**2 points **

**QUESTION 2**

If variable costs increase, but price and fixed

costs are held constant, the break even point will decrease.

** **

True

False

**2 points **

**QUESTION 3**

Probabilistic techniques assume that no uncertainty

exists in model parameters.

** **

True

False

**2 points **

**QUESTION 4**

In general, an increase in price increases the break

even point if all costs are held constant.

** **

True

False

**2 points **

**QUESTION 5**

A continuous random variable may assume only integer

values within a given interval.

True

False

**2 points **

**QUESTION 6**

A binomial probability distribution indicates the

probability of r successes in n trials.

** **

True

False

**2 points **

**QUESTION 7**

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

P(B|A).

** **

True

False

**2 points **

**QUESTION 8**

A model is a functional relationship that includes:

variables

parameters

equations

all of the above

**2 points **

**QUESTION 9**

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

**2 points **

**QUESTION 10**

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?

166.67

200

250

500

**2 points **

**QUESTION 11**

The indicator that results in total revenues being

equal to total cost is called the

marginal cost

marginal volume

break-even point

profit mix

**2 points **

**QUESTION 12**

In a binomial distribution, for each of n trials,

the event

time between trials is constant

always has the same probability of occurring

result of the first trial influence the next trial

trials are continuous

**2 points **

**QUESTION 13**

The area under the normal curve represents

probability, and the total area under the curve sums to

0

1

2

None of the above

**2 points **

**QUESTION 14**

The expected value of the standard normal

distribution is equal to

0

1

2

None of the above

**2 points **

**QUESTION 15**

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 16**

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 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**

The variance of the standard normal distribution is

equal to __________.

** **

**2 points **

**QUESTION 19**

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.

Male

(M) Female (F)

Job

Administrative (AD) 110 10

Salaried

staff (SS) 30 50

Hourly

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?

**2 points **

**QUESTION 20**

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.** **