Explanation
Reading the question: first, we grasp the fact that there
is a unique payment structure dependent on two variables. Then, we try to
understand what the variables are. And we note the fact there's an estimated
payment. A "disadvantage" for Wappo in this rather
creative payment scheme would come if it somehow got paid very little. It does
the installation at no cost and things don't go according to plan. Obviously,
if the product is poor that would be a problem. Slightly more subtly, Wappo isn't getting a payment past 18 months, is it? Other
than new turbines. So things would go very badly if the dam didn't sell much
for 18 months, then sold a lot and loved Wappo, but
didn't install any more. We've got a sort of prediction to use as our filter.
Applying the filter: choices (A) and (B) don't impact the
variables that are inputs to Wappo's pay. And choice
(C) will increase Wappo's payout. (D) is basically
our prediction, but it gets twisted at the end with "above predicted levels."
If demand is at or above predicted levels, Wappo
revenue should be at or above predicted levels. Choice (E) is in the spirit of
our prediction, because unusual weather conditions are impairing revenue. And
"uncharacteristic" indicates the opposite of what we have in (D); in (E), the
weather predictions have not been planned for.
Logical proof: we can confirm (E) with the negation test.
What if weather conditions dramatically
increased the amount of energy that
could be harvested? That would dramatically increase
the "value of energy sold by the plant over an 18-month period" and create an
advantage to the plan. Just as the negated (E) is an advantage, the non-negated
(E) is a disadvantage. The correct answer is (E).
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