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:

Retaining Earnings

Profits that a company reinvests in itself instead of paying out to shareholders as dividends.

Flotation Costs

Those costs occurring when a company issues a new security, including fees to an investment banker and legal fees.

New Common Shares

Issuance of additional shares of a company's stock, which can dilute existing shareholders' equity but raise new capital for the company.

Flotation Cost

The total costs that a company faces when it issues new securities, including underwriting fees, legal fees, and registration fees.