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

**Question 2**

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

**Question 3**

Probabilistic
techniques assume that no uncertainty exists in model parameters.

**Question 4**

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

**Question 5**

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

**Question 6**

**A binomial
probability distribution indicates the probability of r successes in n trials. **

**Question 7**

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

**Question 8**

If
fixed costs increase, but variable cost and price remain the same, the break
even point

**Question 9**

If
the price increases but fixed and variable costs do not change, the break even
point

**Question 10**

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?

**Question 11**

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?

**Question 12**

The
expected value of the standard normal distribution is equal to

**Question 13**

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

**Question 14**

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

**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.*

**Question 16**

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 17**

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

**Question 18**

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.*** .**

**Question 19**

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)
110 10

Salaried staff
(SS)
30 50

Hourly staff
(HS)
60 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?

**Question 20**

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