Gce Model Questions Vol1 2022 Civic Education Question 3
Practice objective / multiple choice question 3 from the 2022 Gce Model Questions Vol1 Civic Education examination.
A government official can be bribed to lower the probability of being caught for a violation. Without a bribe the probability of detection is 0.30 and the fine is \(\text{₦}200{,}000\). If a bribe of amount \(B\) (in naira) is paid, the detection probability falls linearly according to \(p = 0.30 - 0.00002B\) for \(0 \le B \le 10{,}000\); for any bribe larger than \(10{,}000\) the probability cannot fall below 0.05. If the official is caught, he keeps 30% of the fine and the citizen pays the remaining 70%. Determine the bribe amount that minimises the citizen's expected total cost (bribe plus expected fine payment) and state that minimum expected cost.
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About This Question
This is Gce Model Questions Vol1 2022 Civic Education Question 3. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Civic Education examination.
Difficulty level: Hard .
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