Gce Model Questions Vol1 2025 Computer Studies Question 23

Practice objective / multiple choice question 23 from the 2025 Gce Model Questions Vol1 Computer Studies examination.

Gce Model Questions Vol1 2025 Computer Studies Objective / Multiple Choice Medium Difficulty
Question 23 GCE_MODEL_QUESTIONS_VOL1 • 2025 • COMPUTER_STUDIES • objective

An organisation evaluates three security threats. Threat A has a probability of occurrence of 0.02 per year and would cause a loss of $250,000. Threat B has a probability of 0.05 per year and a loss of $120,000. Threat C has a probability of 0.01 per year and a loss of $500,000. The organisation can install a security control that reduces the probability of Threat A by 60\% and the probability of Threat C by 40\%, at an annual cost of $30,000. The control does not affect Threat B. Using the criterion that the expected annual loss reduction must exceed the cost of the control, should the control be implemented? Show your calculations.

Answer Options

A. Yes, because the expected loss reduction $5,000 exceeds the control cost $30,000.
Correct Answer B. No, because the expected loss reduction $5,000 is less than the control cost $30,000.
C. No, because the expected loss reduction $5,000 is greater than the control cost $30,000.
D. No, because the expected loss reduction $35,000 is less than the control cost $30,000.
Correct Answer
B
Correct Option:
No, because the expected loss reduction $5,000 is less than the control cost $30,000.

About This Question

This is Gce Model Questions Vol1 2025 Computer Studies Question 23. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Computer Studies examination.

Difficulty level: Medium .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support