Question 1

2 out of 2 points

In general, an increase in price increases the break even point if all costs are held
constant.
Answer

Selected Answer:

False

Correct Answer:

False

Question 2
2 out of 2 points

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

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.
Answer

Selected Answer:

True

Correct Answer:

True

Question 4
2 out of 2 points

Probabilistic techniques assume that no uncertainty exists in model parameters.

Answer

Selected Answer:

False

Correct Answer:

False

Question 5
2 out of 2 points

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

Selected Answer:

True

Correct Answer:

True

Question 6
2 out of 2 points

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

Answer

Selected Answer:

False

Correct Answer:

False

Question 7

2 out of 2 points

A continuous random variable may assume only integer values within a given interval.
Answer

Selected Answer:

False

Correct Answer:

False

Question 8
2 out of 2 points

The indicator that results in total revenues being equal to total cost is called the
Answer
Selected Answer:

break-even point
Correct Answer:

break-even point

Question 9
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?
Answer
Selected Answer:

175
Correct Answer:

175

Question 10
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?
Answer
Selected Answer:

$40
Correct Answer:

$40

Question 11
2 out of 2 points

A model is a functional relationship that includes:

Answer
Selected Answer:

all of the above

Correct Answer:

all of the above

Question 12
2 out of 2 points

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

1
Correct Answer:

Question 13
2 out of 2 points

The expected value of the standard normal distribution is equal to

Answer
Selected Answer:

0
Correct Answer:

Question 14
2 out of 2 points

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

Answer
Selected Answer:

always has the same probability of occurring

Correct Answer:

always has the same probability of occurring

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.
Answer
Selected Answer:

2500

Correct Answer:
Evaluation Method

Correct Answer

Exact Match

2500

Exact Match

2,500

Question 16
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.

Answer
Selected Answer:

175

Correct Answer:
Evaluation Method

Correct Answer

Exact Match

$175

Exact Match

175

Question 17
2 out of 2 points

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.
Answer
Selected Answer:

20

Correct Answer:
Evaluation Method

Correct Answer
20

Exact Match

Question 18
2 out of 2 points

Wei is considering pursuing an MS in Information Systems degree. She has applied to

two different universities. The acceptance rate for applicants with similar qualifications
is 20% for University X and 45% for University Y. What is the probability that Wei will
be accepted by at least one of the two universities? {Express your answer as a
percent. Round (if necessary) to the nearest whole percent and omit the decimal. For
instance, 20.1% would be written as 20}
Answer
Selected Answer:

56

Correct Answer:
Evaluation Method

Correct Answer
56

Exact Match

Question 19
2 out of 2 points

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)
Salaried staff (SS)
Hourly staff (HS)

110
30
60

10
50
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?
Answer
Selected Answer:

.70

Correct Answer:
Evaluation Method

Correct Answer

Exact Match

0.70

Exact Match

0.69

Exact Match

0.71

Exact Match

.70

Exact Match

.69

Exact Match

.71

Question 20
0 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.
Answer
Selected Answer:

.15

Correct Answer:
Evaluation Method

Correct Answer

Exact Match

2.83

Exact Match

2.82

Exact Match

2.84

Question 1
2 out of 2 points

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

Selected Answer:

True

Correct Answer:

True

Question 2
2 out of 2 points

Probabilistic techniques assume that no uncertainty exists in model parameters.

Answer

Selected Answer:

False

Correct Answer:

False

Question 3
2 out of 2 points

In general, an increase in price increases the break even point if all costs are held
constant.
Answer

Selected Answer:

False

Correct Answer:

False

Question 4
2 out of 2 points

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

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).

Answer

Selected Answer:

False

Correct Answer:

False

Question 6
2 out of 2 points

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

Selected Answer:

True

Correct Answer:

True

Question 7
0 out of 2 points

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

occurred.
Answer

Selected Answer:

False

Correct Answer:

True

Question 8
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?
Answer
Selected Answer:

$40
Correct Answer:

$40

Question 9
0 out of 2 points

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?
Answer
Selected Answer:

200
Correct Answer:

250

Question 10
2 out of 2 points

A model is a functional relationship that includes:

Answer
Selected Answer:

all of the above

Correct Answer:

all of the above

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?
Answer

Selected Answer:

175
Correct Answer:

175

Question 12
2 out of 2 points

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

1
Correct Answer:

Question 13
2 out of 2 points

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

Answer
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 expected value of the standard normal distribution is equal to

Answer
Selected Answer:

0
Correct Answer:

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.
Answer
Selected Answer:

2500

Correct Answer:
Evaluation Method

Correct Answer

Exact Match

2500

Exact Match

2,500

Question 16
2 out of 2 points

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.
Answer
Selected Answer:

20

Correct Answer:
Evaluation Method

Correct Answer
20

Exact Match

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.
Answer
Selected Answer:

175

Correct Answer:
Evaluation Method

Correct Answer

Exact Match

$175

Exact Match

175

Question 18
2 out of 2 points

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

Answer
Selected Answer:

Correct Answer:
Evaluation Method

Correct Answer
1

Exact Match

Question 19
2 out of 2 points

Wei is considering pursuing an MS in Information Systems degree. She has applied to

two different universities. The acceptance rate for applicants with similar qualifications
is 20% for University X and 45% for University Y. What is the probability that Wei will be
accepted by at least one of the two universities? {Express your answer as a
percent. Round (if necessary) to the nearest whole percent and omit the decimal. For
instance, 20.1% would be written as 20}
Answer
Selected Answer:

56

Correct Answer:
Evaluation Method

Correct Answer
56

Exact Match

Question 20
0 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.
Answer
Selected Answer:

0.736

Correct Answer:
Evaluation Method

Correct Answer

Exact Match

0.74

Exact Match

0.73

Exact Match

.74

Exact Match

.73