Question: How must I solve the following problem? DIRECTIONS: Answer Questions 30 through 33 on the basis of the following information. Consider the following costs of
How must I solve the following problem?
DIRECTIONS: Answer Questions 30 through 33 on the basis of the following information.
Consider the following costs of a fire prevention program which can be funded at five different levels:
Funding Level Annual Cost Estimated Annual Property Loss Lives Lost Per Year
$(000) $(000)
A 0 2000 5
B 100 1000 3
C 500 500 1
D 1000 250 3/4*
E 1800 150 1/2
*I,e., three lives every four years.
Question 33. Among the properties to be protected is a special high-risk group, such that 65% of the costs would be needed to avoid 25% of the loss. The return on that part of Alternative B applicable to this high-risk property class (exclusive of lives) would be MOST NEARLY
A. 3.8 B. 16.25 C. 26 D. 90
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