20 questions on business maths
Question 1
 In general, an increase in price increases the break even point if all costs are held constant.
True
False
2 points
Question 2
 Fixed cost is the difference between total cost and total variable cos
True
False
2 points
Question 3
 Parameters are known, constant values that are usually coefficients of variables in equations.
True
False
2 points
Question 4
 Probabilistic techniques assume that no uncertainty exists in model parameters.
True
False
2 points
Question 5
 A continuous random variable may assume only integer values within a given interv
True
False
2 points
Question 6
 The events in an experiment are mutually exclusive if only one can occur at a time.
True
False
2 points
Question 7
 P(A  B) is the probability of event A, if we already know that event B has occurred.
True
False
2 points
Question 8
 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
 A model is a functional relationship that includes:


variables 


parameters 


equations 

all of the above 
2 points
Question 10
 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 breakeven?

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 


breakeven point 


profit mix 
2 points
Question 12
 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
 The expected value of the standard normal distribution is equal to

0 


1 


2 


None of the above 
2 points
Question 14
 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
 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
 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 breakeven point.
2 points
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.
2 points
Question 19
 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.
Job
Administrative (AD) 110 10
Salaried staff (SS) 30 50
Hourly staff (HS) 60 40
 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.
CORRECT ANSWERS :
body preview (145 words)
ANSWERS :
1. False.
xxxxxxxxx in price holding all costs will result in higher xx xxx this will xxxxxx xxx xxxxx
xx
xx True.
xxx x xx x TVC x> FC = xx TVC).
3. xxxxx
xx
4. xxxxxx
xxxxxxxxxxxxxx xxxxxx means there is xxxx uncertainty).
xx xxxxxx
(Integer xxxxxx means xxxxxxxx xxxxxxxxxx
xx
xx xxxxx
xxxxxxxxx xxxxxxxxx means xx one occurs, xxx xxxxx xxx not occur).
xx
xx True.
xxxxxxx means P(A) xxx xxx occurred xxx
xx
xx xx $175.
((3000+25*20)/20 x xxxxx
9. xx xxx of xxx xxxxxx
xxx C. xxx .
(BEP x FC/CM = xxxxxxxxxxx x 250).
11. C. breakeven point.
xx
12. B. 1 x
xx
13. xx 0 x
xx
14. B. always has the xxxx xxxxxxxxxxx xx occurring.
xx
xxxxx 20 xxxxxxxxx
xxx xxxx xx = xxxx => xxxx x xxxxxxxxxx x x> x x 20).
16. xx .
(At, BEP, xx x TCM. => xxxxxx x 50000(P3) . x> x x x ($) xx
xx
17. xxxx units.
xxxx x FC x xx x xxxxxxxxxxxxx = xxxx xxxxxxx
18.
xx = xxxxx q = 0.10 .
xxx < 2) = P(q= 0)+ xxxx xxxx x 10C0 xxx xxxxx x xxxxx q^1*p^9 x
x 1*1*0.9^10 x xxxxxxxxxxxx = xxxxxxx xxxx xxxxxxxxxxx
xx
xxx xx
(var x SD^2 x 1^2 x 1).
xx
20.
P(F U xx = xxxx x P(A) x xxx and A) x
= xxxxxxx x xxxxxxx  10/300 = 210/300 x 0.70 (ANSWER).
Try it before you buy it 