Question

Various techniques have been proposed to curb cross-border drug smuggling into a country. The costs of...

Various techniques have been proposed to curb cross-border drug smuggling into a country. The costs of implementing each strategy along a particularly rugged section of the border are indicated below. The table also includes a score that is compiled based on deterrence, interdiction, and apprehension, with a higher score indicating better performance. Determine the technique with the highest and the lowest cost-effectiveness ratio. For a budget of $55 million, determine the total cost of the most cost-effective techniques.

Activity Cost, $ Score
Tethered Aerostats 3.3 8
Boots-on-the-Ground 30.1 52
Fence 11.2 12
Motion Sensors 6.8 7
Seismic Sensors 4.4 5
Drones 10.4 26

The activity with the lowest cost-effectiveness ratio is ........

The activity with the highest cost-effectiveness ratio is .........

The total cost is $........ million

Homework Answers

Answer #1

Cost-effectiveness ratio (CER) = Score / Cost

Activity Cost, $ Score CER
Tethered Aerostats 3.3 8 2.42
Boots-on-the-Ground 30.1 52 1.73
Fence 11.2 12 1.07
Motion Sensors 6.8 7 1.03
Seismic Sensors 4.4 5 1.14
Drones 10.4 26 2.50

Therefore,

(1) The activity with the lowest cost-effectiveness ratio is Motion Sensors.

(2) The activity with the highest cost-effectiveness ratio is Drones.

(3) The total cost is $51 million

Projects with CER > 1 should be chosen, so projects in descending order of CER, alongwith costs are: Drones ($26M), Tethered Aerostats ($8M), Boots-on-the-Ground ($52M), Seismic sensors ($5M), Fence ($12M) and Motion Sensors ($7M).

Out of this, Boots-on-the-Ground and Motion Sensors cannot be chosen since this will exceed budget of $55M.

Total cost ($M) = 26 + 8 + 5 + 12 = 51

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