Consider the following Table: Company’s Estimates of Cost and Revenue for a Product q 500 600 700 800 900 1000 1100 C(q), in $ 5000 5500 6000 6500 7000 7500 8000 R(q), in $ 4000 4800 5600 6400 7200 8000 8800 Estimate the break-even point for the company. a. The break even point q0 = 900. b. The break even point q0 = 700. c. The break even point q0 = 800. d. A reasonable estimate for the break even point q0 is 830. e. None of these
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Consider the following Table:
Company’s Estimates of Cost and Revenue for a Product
|
q |
500 |
600 |
700 |
800 |
900 |
1000 |
1100 |
|
C(q), in $ |
5000 |
5500 |
6000 |
6500 |
7000 |
7500 |
8000 |
|
R(q), in $ |
4000 |
4800 |
5600 |
6400 |
7200 |
8000 |
8800 |
Estimate the break-even point for the company.
| a. |
The break even point q0 = 900. |
|
| b. |
The break even point q0 = 700. |
|
| c. |
The break even point q0 = 800. |
|
| d. |
A reasonable estimate for the break even point q0 is 830. |
|
| e. |
None of these |
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 4 images
