Suppose the Distribution of Personal Daily Water Usage in New

question 117

Multiple Choice

Suppose the distribution of personal daily water usage in New York City is normally distributed with a mean of 15 gallons and a variance of 25 gallons.Because of a current problem with the distribution of water to its citizens,the mayor wants to give a city tax rebate to the 15 percent of the population who use the least amount of water.What should he use as the water limit for a person to qualify for a city tax rebate?

• A)9.825
• B)15.00
• C)12.20
• D)10.25

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Definitions:

Allowance For Doubtful Accounts

The contra asset account for accounts receivable.

Adjusting Journal Entry

A record in accounting that is used to adjust incomes and expenses to match the accounting period in which they actually occurred.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.

Allowance For Doubtful Accounts

An account opposite to assets that predicts the amount of accounts receivable that might not be recoverable.