Mat 540 wk 1

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Unformatted text preview: Question 1 1. If variable costs increase, but price and fixed costs are held constant, the break even point will decrease. Answer True False 2 points Question 2 1. Fixed cost is the difference between total cost and total variable cost. Answer True False 2 points Question 3 1. Probabilistic techniques assume that no uncertainty exists in model parameters. Answer True False 2 points Question 4 1. In general, an increase in price increases the break even point if all costs are held constant. Answer True False 2 points Question 5 1. A binomial probability distribution indicates the probability of r successes in n trials. Answer True False 2 points Question 6 1. If events A and B are independent, then P(A|B) = P(B|A). Answer 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. Answer True False 2 points Question 8 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?month to break-even?...
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