# MAT 540 Quiz 1 Essay

746 WordsFeb 4, 20143 Pages
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 .…show more content…
. . profit mix .   2 points =break-even point Question 12 .   In a binomial distribution, for each of n trials, the event   Answer . . . 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 = always has the same probability of occurring Question 13 .   The area under the normal curve represents probability, and the total area under the curve sums to   Answer . . . 0 . . . 1 . . . 2 . . . None of the above .   2 points = 1 Question 14 .   The expected value of the standard normal distribution is equal to   Answer . . . 0 . . . 1 . . . 2 . . . None of the above .   2 points = 0 Question 15 .   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.     Answer   =3 2 points =5 Question 16 .   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