Waec Model Questions Vol1 2020 Civic Education Question 40
Practice objective / multiple choice question 40 from the 2020 Waec Model Questions Vol1 Civic Education examination.
A public official may embezzle an amount \(x\) (in whole millions of naira) from a project, where \(0 \le x \le 20\). The probability of being caught depends on the amount: - For \(x \le 10\): \(p = 0.005x\) (0.5 % per million).\n- For \(x > 10\): \(p = 0.01x - 0.05\) (the detection risk rises faster after 10 million). If caught, the official must return the embezzled amount and also pay a fine equal to 150 % of that amount (total loss = 2.5 x). If not caught, the official keeps the full amount \(x\). The official wants to maximise the expected net gain. What amount (in whole millions of naira) should be embezzled to achieve the highest expected net gain?
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About This Question
This is Waec Model Questions Vol1 2020 Civic Education Question 40. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Civic Education examination.
Difficulty level: Hard .
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