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
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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