A village is considering how to address a graffiti problem it has. It cannot raise the punishment
Question:
A village is considering how to address a graffiti problem it has. It cannot raise the punishment for someone convicted of illegally painting graffiti, but is considering whether it has enough police officers on patrol. The village's consultant estimates that the typical graffiti criminal gets a benefit of 300 from painting graffiti of the type that troubles the village. Based on police reports and arrests, she estimates that the probability of a graffiti painter being caught (assume if caught, he or she is convicted) is .1. The punishment for graffiti painting is estimated to amount to -900. Andy, the village's police chief, has asked the village board to hire one more police officer to help him and Barney, currently the only other police officer in the village. The village's consultant estimates that an additional officer will increase the probability that someone painting graffiti is caught to .6. If criminals in this village are rational, will hiring the additional police officer reduce the village's graffiti problem? Explain
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood