Neco Model Questions Vol1 2020 Civic Education Question 9
Practice objective / multiple choice question 9 from the 2020 Neco Model Questions Vol1 Civic Education examination.
A local government official earns a monthly salary of \(\text{₦}150{,}000\). He may accept bribes for processing permits, each bribe giving \(\text{₦}20{,}000\). If he processes more than 5 permits in a month, the probability of being caught that month is 5 %; a conviction incurs a fine of \(\text{₦}500{,}000\) and a two‑month suspension (no salary). Assuming the fine is paid immediately in the month of detection, determine the number of permits \(n\) the official should process each month to maximise his expected net monthly income (salary + bribes - expected fine). State whether the optimal \(n\) is above the risk threshold of 5 permits.
Answer Options
About This Question
This is Neco Model Questions Vol1 2020 Civic Education Question 9. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Civic Education examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.