Answer:
Company X provide electricity to 5 houses in neighborhood.
Solution :
Given that
Number of houses in neighborhood = 40
Company X Provide electricity to 1/8 of the houses in this neighborhood.
Need to determine how many houses does company provide electricity to.
Let's assume that Company X Provide electricity to y houses
As given that Company X Provide electricity to 1/8 of the houses that is 1/8 of total number of houses, we can frame expression as follows,

Hence company X provide electricity to 5 houses in neighborhood