A Recent Survey Was Conducted to Compare the Cost of Solar

question 127

Multiple Choice

A recent survey was conducted to compare the cost of solar energy to the cost of gas or electric energy. Results of the survey revealed that the distribution of the amount of the monthly utility bill of a 3-bedroom house using gas or electric energy had a mean of $104 and a standard deviation of $10. If the distribution can be considered mound-shaped and symmetric, what percentage of homes will have a monthly utility bill of more than $94?

• A) approximately 95%
• B) approximately 34%
• C) approximately 16%
• D) approximately 84%

Explain the impact of private information on economic efficiency and the role of risk in economic decision-making.

Apply the concept of expected value to calculate health costs and insurance premiums.

Understand the behavior of risk-averse individuals and their strategies to manage risk.

Analyze the effects of diversification and the pooling of risk on reducing economic uncertainty.

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Definitions:

Perfect Prediction

A situation where a model or analysis predicts the outcome with 100% accuracy, with no errors.

Regression Equation

An equation that describes the line of best fit through a dataset, used to predict the outcome variable.

Regression Line

A line of best fit through a dataset, used to predict the value of a dependent variable based on the value of an independent variable.

Standard Error

An estimate of the standard deviation of a sampling distribution, often used in inferential statistics.