If the Monthly Rent of All One-Bedroom Apartments in a Small

question 136

Multiple Choice

If the monthly rent of all one-bedroom apartments in a small town are known to be normally distributed with a mean equal to $175 a month and standard deviation of $35, which of the following would be the highest individual rent that you might expect to find?

• A) about $195
• B) about $210
• C) about $245
• D) about $280
• E) More information is needed to answer the question.

---

Definitions:

Direct Method

A way of presenting a cash flow statement where major classes of gross cash receipts and payments are disclosed, providing insight into the sources and uses of cash.

Cash Paid

The total amount of cash disbursed by a company for various purposes, including operating expenses, investing activities, and financing activities.

Insurance

A contractual arrangement in which one party agrees to compensate another for specified loss, damage, illness, or death in exchange for a premium.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, reflecting its operational, investing, and financing activities.