Gce Model Questions Vol1 2018 Geography Question 26

Practice objective / multiple choice question 26 from the 2018 Gce Model Questions Vol1 Geography examination.

Gce Model Questions Vol1 2018 Geography Objective / Multiple Choice Hard Difficulty
Question 26 GCE_MODEL_QUESTIONS_VOL1 • 2018 • GEOGRAPHY • objective

A volcanic region has an annual probability of a VEI 3 eruption of \(2\%\). If an eruption occurs, the average economic damage is £150 million and \(0.8\%\) of the \(250\,000\) inhabitants are injured, each incurring £12 000 in medical costs. A mitigation programme costing £8 million reduces the annual eruption probability by \(30\%\) and lowers the injury cost per person by \(25\%\). Over a 5‑year planning horizon, should the council invest in the programme to minimise expected total cost? Calculate the difference in expected total cost (in £ million) between investing and not investing.

Answer Options

A. Yes; the expected total cost with mitigation (£16.00 million) is lower than without (£16.72 million) by approximately £0.72 million, so the council should invest.
B. No; the expected total cost with mitigation (£18.00 million) exceeds that without (£16.72 million) by approximately £1.28 million, so the council should not invest.
Correct Answer C. No; the expected total cost with mitigation (£19.44 million) exceeds that without (£16.72 million) by approximately £2.72 million, so the council should not invest.
D. Yes; the expected total cost with mitigation (£15.30 million) is lower than without (£16.72 million) by approximately £1.42 million, so the council should invest.
Correct Answer
C
Correct Option:
No; the expected total cost with mitigation (£19.44 million) exceeds that without (£16.72 million) by approximately £2.72 million, so the council should not invest.

About This Question

This is Gce Model Questions Vol1 2018 Geography Question 26. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Geography examination.

Difficulty level: Hard .

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