Question 1
Probabilistic techniques assume that no uncertainty exists in model parameters.
Question 2
Fixed cost is the difference between total cost and total variable cost.
Question 3
Parameters are known, constant values that are usually coefficients of variables in equations.
Question 4
In general, an increase in price increases the break even point if all costs are held constant.
Question 5
A continuous random variable may assume only integer values within a given interval.
Question 6
If events A and B are independent, then P(A|B) = P(B|A).
Question 7
P(A | B) is the probability of event A, if we already know that event B has occurred.
Question 8
The purpose of break]even analysis is to determine the number of units of a product to sell that
will
Question 9
If the price increases but fixed and variable costs do not change, the break even point
Question 10
The indicator that results in total revenues being equal to total cost is called the
Question 11
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?
Question 12
The expected value of the standard normal distribution is equal to
Question 13
The area under the normal curve represents probability, and the total area under the curve
sums to
Question 14
In a binomial distribution, for each of n trials, the event
Question 15
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.
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
register for the seminar for the university to break even? Note: please report the result as a
whole number, omitting the decimal point.
Question 17
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.
Question 18
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}
Question 19
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 0 1 2 3 4 5 6
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.
Question 20
The variance of the standard normal distribution is equal to __________.
Question 1
Probabilistic techniques assume that no uncertainty exists in model parameters.
Question 2
Fixed cost is the difference between total cost and total variable cost.
Question 3
Parameters are known, constant values that are usually coefficients of variables in equations.
Question 4
In general, an increase in price increases the break even point if all costs are held constant.
Question 5
A continuous random variable may assume only integer values within a given interval.
Question 6
If events A and B are independent, then P(A|B) = P(B|A).
Question 7
P(A | B) is the probability of event A, if we already know that event B has occurred.
Question 8
The purpose of break]even analysi
