Suppose the mayor wants to give a city tax rebate to 10% of the residents who us

Question

Suppose the mayor wants to give a city tax rebate to 10% of the residents who use the least amount of water. What should the mayor use as the water limit for the resident to qualify for a city tax rebate? The mayor wants city residents to reduce their water consumption so he initiates a water conservation campaign. His goal is to have no more than 2.28% of households use more than 60 gallons per day. By how much would the mean daily household usage have to be reduced to meet the mayor's goal? Assume the standard deviation will remain at 10 gallons per day

Explanation / Answer

You have not provided the mean and standard deviation for this question's data.

Assuming mean as 'm' and standard deviation as 'S':

(c)

For a p-value of 0.10, the corresponding z-score is:

z = -1.28

So,

(X-m)/S = -1.28

Putting values:

X = -1.28*S + m

Put the values of 'S' and 'm' to calculate the value for X, which is the desired limit for water consumption.

Hope this helps !

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