Neco Model Questions Vol1 2017 Civic Education Question 10
Practice objective / multiple choice question 10 from the 2017 Neco Model Questions Vol1 Civic Education examination.
A public officer can choose to accept a one‑time bribe of ₦500 000. If he accepts, each year there is a 5 % chance that he will be caught, in which case he must pay a fine of ₦2 000 000 and lose his job, ending any future earnings. His legal annual salary is ₦300 000 and he plans to work for the next 10 years. Assuming the probability of being caught each year is independent and ignoring the time value of money, should he accept the bribe? Compute the expected net amount he would have after 10 years if he accepts the bribe and compare it with the amount he would earn without accepting it. State the decision (Accept or Reject) and the expected net amount if he accepts.
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About This Question
This is Neco Model Questions Vol1 2017 Civic Education Question 10. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Civic Education examination.
Difficulty level: Hard .
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