Neco Model Questions Vol1 2019 Civic Education Question 40

Practice objective / multiple choice question 40 from the 2019 Neco Model Questions Vol1 Civic Education examination.

Neco Model Questions Vol1 2019 Civic Education Objective / Multiple Choice Hard Difficulty
Question 40 NECO_MODEL_QUESTIONS_VOL1 • 2019 • CIVIC_EDUCATION • objective

A peace‑building initiative has a fixed budget of ₦20 million to be split between two components: community dialogue (C) and economic development (E). Let \(x\) million naira be allocated to C, so \(20-x\) million goes to E. The probability that C succeeds is \(p_C = 0.4 + 0.03x\) (capped at 0.9) and the probability that E succeeds is \(p_E = 0.5 + 0.02(20-x)\) (capped at 0.9). The two components succeed independently, and peace is achieved only if both succeed. The monetary benefit of achieving peace is estimated at ₦100 million. Determine the integer value of \(x\) (in millions) that maximises the expected net benefit (expected benefit minus the fixed cost). State the optimal allocation as "\(x\) million to C and \(20-x\) million to E".

Answer Options

Correct Answer A. 16 million to C and 4 million to E
B. 18 million to C and 2 million to E
C. 12 million to C and 8 million to E
D. 14 million to C and 6 million to E
Correct Answer
A
Correct Option:
16 million to C and 4 million to E

About This Question

This is Neco Model Questions Vol1 2019 Civic Education Question 40. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Civic Education examination.

Difficulty level: Hard .

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