20 questions on business maths

Question 1 

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

True 

False 

2 points 

Question 2 

1. Fixed cost is the difference between total cost and total variable cos

True False 2 points 

Question 3 

1. Parameters are known, constant values that are usually coefficients of

   variables

   in

   equations

   .

True False 2 points 

Question 4 

1. Probabilistic techniques assume that no uncertainty exists in model

   parameters

   . 

True False 2 points 

Question 5 

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

True False 2 points 

Question 6 

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

True False 2 points 

Question 7 

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

True False 2 points 

Question 8 

1. 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? 

 

 

 

 

100

120

150

175

 2 points 

Question 9 

1. A model is a functional relationship that includes:

 

  variables  parameters  equations 

all of the above

 2 points 

Question 10 

1. 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?

 

 

 

 

166.67

200

250

500

 2 points 

Question 11 

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

 

 

 

 

marginal cost

marginal volume

break-even point

profit mix

 2 points 

Question 12 

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

 0 1 2

 

	None of the above

 2 points 

Question 13 

1. The expected value of the standard normal distribution is equal to

  0 1 2 None of the above 2 points 

Question 14 

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

Answer 

 

 

 

 

 

time between trials is constant

always has the same probability of occurring

result of the first trial influence the next trial

trials are continuous

 2 points 

Question 15 

1. 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.

2 points 

Question 16 

1. 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.

2 points 

Question 17 

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.

2 points 

Question 18 

1. 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. 

2 points 

Question 19 

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

2 points 

Question 20 

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?