A Recent Survey Was Conducted to Compare the Cost of Solar

question 165

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 nothing is known about the shape of the distribution, what percentage of homes will have a monthly utility bill of less than $84?

• A) at most 25%
• B) at least 75%
• C) at most 11.1%
• D) at least 88.9%

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Definitions:

Sale and Leaseback Arrangement

A financial transaction where one sells an asset and leases it back for the long term; thus, one continues to use the asset but no longer owns it.

Lessee

An individual or entity that leases or rents an asset from its owner, known as the lessor.

Captive Finance Company

Wholly owned subsidiary that handles credit extension and receivables financing through commercial paper.