Question 1

2 out of 2 points

If variable costs increase, but price and fixed costs are held constant, the break even point will decrease.

Selected Answer:

False

Correct Answer:

False

Question 2
2 out of 2 points

Probabilistic techniques assume that no uncertainty exists in model parameters.

Selected Answer:

False

Correct Answer:

False

Question 3
2 out of 2 points

Parameters are known, constant values that are usually coefficients of variables in equations.
Selected Answer:

True

Correct Answer:

True

Question 4
2 out of 2 points

Fixed cost is the difference between total cost and total variable cost.

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).

Selected Answer:

False

Correct Answer:

False

Question 6
2 out of 2 points

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

Selected Answer:

True

Correct Answer:

True

Question 7
2 out of 2 points

The events in an experiment are mutually exclusive if only one can occur at a time.
Selected Answer:

True

Correct Answer:

True

Question 8
2 out of 2 points

A model is a functional relationship that includes:

Selected Answer:
all of the above
Correct Answer:
all of the above
Question 9
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?
Selected Answer:
$40
Correct Answer:
$40
Question 10
2 out of 2 points

The indicator that results in total revenues being equal to total cost is called the
Selected Answer:
break-even point
Correct Answer:
break-even point
Question 11
2 out of 2 points

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?
Selected Answer:
175
Correct Answer:
175
Question 12

2 out of 2 points

The expected value of the standard normal distribution is equal to

Selected Answer:
0
Correct Answer:
0
Question 13
2 out of 2 points

In a binomial distribution, for each of n trials, the event

Selected Answer:
always has the same probability of occurring
Correct Answer:
always has the same probability of occurring
Question 14

2 out of 2 points

The area under the normal curve represents probability, and the total area under the curve sums to
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.
Selected Answer:

2500

Correct Answer:

Evaluation Method

Correct Answer

Case Sensitivity

Exact Match

2500

Exact Match

2,500

Question 16
2 out of 2 points

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.

Selected Answer:

Correct Answer:

Evaluation Method

Correct Answer

Exact Match

$5

Exact Match

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.
Selected Answer:

175

Correct Answer:

Evaluation Method

Correct Answer

Exact Match

$175

Exact Match

175

Question 18

Case Sensitivity

2 out of 2 points

The variance of the standard normal distribution is equal to __________.

Selected Answer:

Correct Answer:

Evaluation Method
Exact Match

Correct Answer

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)

.10

.15

.18

.20

.20

.10

.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.
Selected Answer:

2.83

Correct Answer:

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

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.
Selected Answer:

0.74

Correct Answer:

Evaluation Method

Correct Answer

Exact Match

0.74

Exact Match

0.73

Exact Match

.74

Exact Match

.73

Saturday, January 9, 2016 3:56:03 PM EST

Case Sensitivity