MAT540 Quiz 2

Question 1
Probabilistic techniques assume that no uncertainty exists in model parameters.
Selected Answer:

False

Correct Answer:

False

Question 2

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

True

Correct Answer:

True

Question 3
2 out of 2 points

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

True

Correct Answer:

True

Question 4
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 5

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 6
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 7
2 out of 2 points

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

False

Correct Answer:

False

Question 8
2 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?

Selected Answer:
250
Correct Answer:
250
Question 9
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 10
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 11
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 12
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 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 expected value of the standard normal distribution is equal to

Selected Answer:
0
Correct Answer:
0
Question 15
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.
Selected Answer:

20

Correct Answer:

Evaluation Method
Exact Match

Correct Answer

Case Sensitivity

20

Question 16
2 out of 2 points

Administrators at a university are planning to offer a summer seminar. mso-paramargin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; msobidi-font-size:11.0pt; font-family:"Times New Roman","serif"; mso-bidi-fontfamily:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} 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

Case Sensitivity

Question 17
2 out of 2 points

mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; fontsize:12.0pt; mso-bidi-font-size:11.0pt; font-family:"Times New Roman","serif";

mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;}
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
Exact Match

Correct Answer
$5

Case Sensitivity

Exact Match

Question 18
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? mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan;
font-size:12.0pt; mso-bidi-font-size:11.0pt; font-family:"Times New
Roman","serif"; mso-bidi-font-family:"Times New Roman"; mso-bidi-themefont:minor-bidi;} 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

Case Sensitivity

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?
Selected Answer:

0.70

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

Case Sensitivity

Question 20
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? mso-paramargin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; msobidi-font-size:11.0pt; font-family:"Times New Roman","serif"; mso-bidi-fontfamily:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} 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